Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
How does government exercise its control in the economy? |
Taxation -regulation |
|
|
Direct taxes |
Paid directly to government by tax payers |
|
|
Indirect taxes |
Paid to 1/3 of the party who pays for it. |
|
|
Property tax |
Conditioned on the ownership / measured by its assessed value (pay for schools) |
|
|
Sales Tax |
Applied taxes |
|
|
Occupation tax |
Imposed by a city on a occupation or business in the area |
|
|
Income tax |
targets income earned in the force of wages, salaries, interest, stock dividends,rent, and etc. |
|
|
Flat Tax |
Charges the same rate to each tax payer and violates ability to pay principle. |
|
|
Ability-to-principle |
Wealthier people should be able to contribute to a larger percentage of income to support government activities. |
|
|
Tragedy of Commons |
The benefitsand costs of a collective resource are skewed such that individuals aremotivated to over exploit it.
- By making achoice that benefits the individual, everyone ultimately loses including theindividual. |
|
|
State governments |
Regulate service provision via occupational licensing.
|
|
|
Local Government |
occurs in the form of zoning, building codes, and publichealth.
|
|
|
Means of production |
The mechanismsfor transforming labor into wealth.
|
|
|
Feudalism |
Peasants raisecrops and livestock on a landlord’s estate and are obligated to give him apercentage in exchange for protection.
-Land was the mean of production |
|
|
Adam Smith |
*Wealth of Nations - Workersproduced more pins per day when they each performed a limited part of theoperation. |
|
|
Force Multiplier |
The combinedindividual effort of well-organizedworkers is greater than the sum of their parts.
|
|
|
Comparative Advantage |
Both sides ina trade can come out of the exchange wealthier/better off.
-John Stuart Mill |
|
|
Competition Effects: |
1) Profit 2)Materials 3) Overhead 4) Wages |
|
|
Laissez Faire Capitalism |
– An economic system with very little governmentinvolvement in the economy
|
|
|
▪Whateventually happens in laissez-faire capitalism?
|
A tragedy of commons. -Capitalists exploit workers, workers die, factoriessit idle, and no profits are made |
|
|
Who controls the means of production in socialism? |
Society |
|
|
Socialism |
▪Unlikecapitalism, there is no reward for efficiency/improvement under socialism.
- ▪Equality inthe distribution of wealth is the driving factor in socialism.html> |
