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18 Cards in this Set
- Front
- Back
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what are external costs and benefits
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the external costs and benefits are the effects that the decision-makers ignore in the markets
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Clayton Act of 1914
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prohibits certain business practices
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Federal trade commission act 1914
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created the federal trade commission to enforce the antitrust laws
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Celler-Kefauver antimerger act
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it broadened the Clayton Act which applied only to horizontal mergers and included any merger that lessens compeition or tends to create a monopoly
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the programs to help ppl fall into what two categories
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1) programs to increase income and the standard of living
2) programs to eliminate the causes of poverty and economic disadvantage |
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what are subsidies
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it is financial aid
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how does the federal government spend money
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1)direct benefit payments to individuals
2)national defense 3)net interest 4)grants |
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what is an excise tax
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it is a tax on the sale/manufacture of a specific item
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what are the purposse of the government collecting taxes
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1) pay the cost of government
2) protect selected industries 3)discourage activities the government deems harmful 4)encourage certain activities |
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what is tax incidence
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refers to the final impact of a tax; who will really have to pay it
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who should pay taxes
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1) depending on the benefits-received
2) depending on a persons ability to pay |
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what is proportional tax
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one that takes the same percentage of all incomes
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what is a progressive tax
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one that takes a larger percentage of a higher income and a smaller percentage of a lower income
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what is the opposite of a "flat tax" progressive tax
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a proportional tax
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what are regressive taxes
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these take a higher percentage of taxes from low-income persons than from high-income persons. sales taxes are regressive
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what are the four kinds of federal taxes
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1)personal income
2) social insurance 3) corporate income 4)excise |
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what is the gross debt
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it is the total of all the federal governments ious
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what are the concerns resulting from the deficit
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1)rising annual interest payments on the debt
2)large deficits might lead to higher interest rates 3)deficits and private business deficit means less investment in businesses and fewer jobs+lower productivity 4)it may cause inflation since the govt. can print out more money to finance its deficits which would increase the amt of money faster than the suppplies of goods and services which ppl can spend it on |
