Laffer curve - Study guides, Class notes & Summaries

When a tax is imposed on the buyers of a good, the demand curve shifts - downward by the amount of the tax Efficiency is attained when - total surplus is maximized. The size of the deadweight loss generated from a tax is affected by the - elasticities of both supply and demand. The maximum price that a buyer will pay for a good is called the - willingness to pay. When a tax is placed on a product, the price paid by buyers _________, and the price received by sellers __________. - rises; f...

Globalisation: The process by which the world is becoming a single economy Sustainable Development: Development that meets the needs of current generations without compromising the needs of future generations Transfer Pricing: An account technique used by TNC's for reducing taxes on profits. By buying internally to ensure losses in high tax countries and profits declared in low tax regions. Capital Markets: Financial Markets which provide long-term borrowing and lending...

ECO 202 CH 16 (part 2)- Fiscal Policy. Questions And Answers 2023 Update. (A Grade) productive capacity, rate of economic growth - Answer-fiscal policy actions intended to have long-run effects by expanding the ____ of the economy and increasing the ____ incentives to work, save, invest, start a business - Answer-Attempt to increase aggregate supply by changing taxes to increase the ___, ___, ___, ___, and ___ tax wedge - Answer-the difference between pre-tax and post-tax return to an e...

laffer curve shows the relationship between tax rates and the amount of tax revenue collected by governments illustrates the argument that sometimes cutting tax rates can result in increased tax revenue marginal tax rate tax rate that will apply if the tax base increases by one rand effective tax rate determined by dividing tax liability by total profit or income income tax capital gains tax turnover tax dividends tax other types of tax value added tax estate...

ECO 202 CH 16 (part 2)- Fiscal Policy. Questions And Answers 2023 Update. (A Grade) productive capacity, rate of economic growth - Answer-fiscal policy actions intended to have long-run effects by expanding the ____ of the economy and increasing the ____ incentives to work, save, invest, start a business - Answer-Attempt to increase aggregate supply by changing taxes to increase the ___, ___, ___, ___, and ___ tax wedge - Answer-the difference between pre-tax and post-tax return to an e...

Production Possibility Frontier - ANSWERS Supply and demand diagram showing equilibrium - ANSWERS Supply and demand surplus - ANSWERS Increase in demand - ANSWERS Decrease in demand - ANSWERS Increase in supply - ANSWERS Decrease in supply - ANSWERS Consumer surplus - ANSWERS Producer surplus - ANSWERS Inelastic demand - ANSWERS Elastic demand - ANSWERS Unitary elastic demand - ANSWERS Perfectly elastic demand - ANSWERS Perfectly inelastic demand - ANSWERS ...

Principles Of Microeconomics Final Exam Questions And Answers 2023

E201 Final Exam Questions and Answers 2023 Economics is the study of what How society manages its scares resources The opportunity cost of going to college is what The value of the best opportunity a students gives up to attend college What is the most important factor that explains differences in living standards across countries Productivity The business cycle is the irregular fluctuations in economic activity The terms equality and efficiency are similar in th...

Ceteris paribus all other things are being held equal positive economics matters of economics that can be proven to be right or wrong by looking at the facts normative economics matters of economics that are based upon opinion and so are incapable of being proven to be right or wrong scarcity the limited availability of economic resources relative to societys unlimited demand for goods and services land the physical factor of production. It consists of natural re...

Principles of TaxationIncome effect - answer-Impact of an increase in a tax on earnings on people's work decisions. The tax will reduce the income that people receive for a given number of hours of work, encouraging them to work more to limit any decline in living standards Substitution effect - answer-Whereby a tax rate increase makes an hour of work less attractive relative to an hour of leisure than it had been previously, encouraging people to work less 'Rules of thumb' of a tax sys...