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19 Cards in this Set

  • Front
  • Back
What is income?
income refers to the flow of wages, interest payments, dividends,
and other frows of money during a period of time.
What are Transfer payments?
Transfer payments are payments made by the government to in-
dividuals that are not made in return for goods and services.

The government uses transfer payments to distribute income in the
economy more equally.
What is Wealth?
Wealth is the net dol lar value of al l assets owned at a given point
in time.
What is Labor Supply?
Labor Supply is defined as the number of hours that the population
is wil ling to spend working in gainful activities.
What is Investment in Human Capital?
Investment in Human Capital is the expenditure on education and
training that improves the skil ls and therefore the productivity of
the workers.
When does Economic Discrimination occur?
Economic Discrimination occurs when female or minority work-
ers, who have the same abilities, education, training, and experi-
ence as white male workers, are accorded inferior treatment with
respect to hiring, occupational access, promotion, or wage rate.
What is Economic rent?
Economic rent is the price paid for use of land and other natural resources that are fixed in supply. (Note that this definition differs
from the everyday use of the term.)
What are Public Goods?
Public Goods are goods that are provided to everyone, even to those who refuse to pay. No one can be restricted from using a public good.
What makes a Progressive Tax
A tax is progressive if its average rate increases as income increases; the tax grows both absolutely and proportionately with income.
What makes a proportional tax
A tax is proportional if its average rate remains the same; the tax payment grows absolutely with income but remains the same proportionate to income.
What makes a tax regressive?
A tax is regressive if its average rate declines as income increases;
the tax may or may not increase in the absolute amount, but it declines in proportion to income.
What are Capital goods?
Capital goods are goods that are produced in order to be used in
What is the rate of return on capital?
rate of return on capital is the annual net return (rental minus expenses) per dollar of invested capital. Net return is measured as percent per year.
What is present value?
present value is the dollar value today of a stream of income over time. It is measured by calculating how much money invested today will be needed, at the going interest rate, to generate the assets future stream of income.
What are Tariffs?
Tariffs are excise taxes on imports and may be used for revenue purposes, or more commonly as devices that protect domestic producers from foreign competition by raising import prices.
What are Import quotas?
Import quotas specify the maximum amounts of imports al lowed in a certain period of time.
Who was Samuel Gompers?
He was the First President of the American Federation of Labor
Who was David Ricardo?
He discovered Comparative advantage
Who was Wilfredo Pareto?
He worked on Indifference curves and marginal utility theory