Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Macroecomics EC1001
Chap 4
| Question | Answer |
|---|---|
| What are the four elements that make up the U.S Economy | Household,Government,international,and business |
| What is a durable good | A good that has a useful life for more than three years |
| What is a non durable good | A good that has a useful like of less than three years |
| Define a service | work done for a customer by a barber, lawyer, hair dresser |
| Define a plant | a physical establishment were good and services are produced and sold |
| Define a firm | a business that owns and operates the plant and produces and sells good and services |
| Define a industry | A group of firms that sells same or similar products |
| What is horizontal integration | A firm that owns and operates more than one plant at the same level or stage in the production or distribution process |
| Why do firms own more than one plant | So that they can grow |
| What is vertical integration | A firm that owns and operates more than one plant at different levels or stages in the production process |
| What is a conglomerate combination | A firm that owns and operates more than one plant in different industries |
| What is a sole proprietorship | A business owned and operated by one person. It is a incorporated operation with unlimited liability |
| What is a partnership | A unincorporated business owned by more than one owner with unlimited liability |
| What is a corporation | A incorporated business that is owned by stockholder with limited liability |
| What is the economic function of the government | To promote competition |
| Why is competition good for the economy | It gives corporations competitive advantage |
| What is the Sherman Act | A law passed in 1890 which says that monopolies are illegal |
| What are corrections for spillover cost | Regulations, fines, criminal penalties |
| What is a spillover cost | A cost that doesn't directly effect a business and spills over to a third party |
| What are examples of spill over costs | toxic waste and air pollution |
| What is a spill over benefit | When a buyer purchases a product and some of the benefits spill over to a third party |
| What is an example of spill over benefits | education |
| What is a public good | A good that is so large and expensive the government has to purchase so the public can use it |
| How does the government redistribute income | Transfer payments, market intervention, and taxation |
| What is a transfer payment | Compensation aid in the form of welfare checks or food stamps |
| Who can receive transfer payment | The disable,older citizens and the unemployed |
| What is market force intervention | The government alters distribution of income by modifying the prices that are or would be established by market force |
| What is a example of market intervention and its purpose | Minimum wage which is designed to raise the income of a specific group |
| what is the free rider problem | It is when people can receive a good or service with out paying for it |
| What is a quasi public service | Is a good that is purchased by government that could be used in a way that exclusion can happen |
| Give examples of a quasi public service | education, policemen, libraries |
| How does taxation provide funds for public goods and quasi goods | Taxation release resources from private consumer good like food and clothing, then the funds are used to produce public goods and quasi goods |
| According to macroeconomics when does economic stability exist | full employment, low inflation and stable |
| How does government and nation's central bank( federal reserve) promote price stability and full employment | Thur the fiscal policy and monetary policy |
| Give examples of a quasi public service | education, policemen, libraries |
| How does taxation provide funds for public goods and quasi goods | Taxation release resources from private consumer good like food and clothing, then the funds are used to produce public goods and quasi goods |
| According to macroeconomics when does economic stability exist | full employment, low inflation and stable |
| How does government and nation's central bank( federal reserve) promote price stability and full employment | Thur the fiscal policy and monetary policy |
| What is the fiscal policy | the government taxing and spending policy |
| What is the monetary policy | the central bank interest rate policy |
| How does the government try to fix economic problems | by alter either the monetary or fiscal policy |
| When unemployment is low how is the fiscal policy altered | The government tries to increase the total spending by raising its own spending or lowing tax rates to encourage greater private spending |
| When unemployment is low how is the monetary policy altered | By lowing interest rate which will encourage more private borrowing and spending |
| How does inflation happen | Price level increase, prices of goods and services rise when the amount of spending is the economy increases more rapidly than the supply of good and service. Which happens when the interest rate remains to low for economic reasons. |
| What are the three ways the central banks tries to correct inflation | By increasing the interest rate to slow down borrowing and spending, cutting it expenditure or boosting tax to reducing private spending |
| What are government purchase | are exhaustive which are products that are directly absorb and are a part of domestic output |
| Why are transfer payments non exhaustive | because they do not absorb resources or create output |
| What are the four areas of federal spending | pensions and income security, national defense, health, and interest on the public debt |
| What are personal income taxes | a taxable income that is based on the income of the household or unincorporated businesses |
| What is the federal personal income tax | s progressive tax that is a larger percent if your income is high |
| what is the marginal tax rate | it is the rate at which the tax is paid on each additional taxable income |
| What is the average tax rate | is the total tax paid divided by the total taxable income |
| What are payroll taxes and what do they fund | taxes that are based on wages and salaries and the finance social security and medicare |
| what are corporate income tax | is based on the corporate profit and it the difference between total revenue and its total expenses. Its almost always 35 % |
| What is excise tax | a tax on commodities or on purchase |
| What are states primary source of tax revenue | sale tax and excise tax |
| Where does the government receive most of it tax revenue | property tax |
Created by:
744030831
Popular Management sets