Term
| Percent of GDP spent by gov |
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Definition
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Term
| Percent of gov spending on health, defense, and SS |
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Definition
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Term
| What percent of gov spending spent on transfer payments |
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Definition
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Term
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Definition
| Cause and effect, prescribes policies based on underlying value judgements |
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Term
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Definition
| sets up criteria to evaluate economic outcomes, ie efficency |
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Term
| Marginal Conditions for Efficency |
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Definition
| - when it becomes impossible to make one person better off without hurting another, efficiency has been achieved |
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Term
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Definition
| when a net gain is no longer possible by producing more |
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Term
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Definition
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Term
| When, MSB=MSC (efficency) |
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Definition
| Difference between total social benefit and total social cost max |
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Term
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Definition
| if the value of gains from a change in resource allocation exceeds the value of the loses, then it is efficient to make the change, regardless of whether the losers are compensated for the loses |
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Term
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Definition
| internalize externalities |
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Term
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Definition
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Term
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Definition
| Way of internalizing externalities by establishing property rights to resource use when transaction costs of bargaining are lot. |
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Term
| Definition of public good |
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Definition
| Benefits are collectively consumed by an entire population. Non-rival. Consumption by one does not hurt the consumption of others. Non-exclusion- cannot exclude a person from use |
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Term
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Definition
| Tax share adjusted until all have the same quantity of the good |
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Term
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Definition
| how voting and the political process influences political equilibrium |
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Term
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Definition
| Vote trading, resulting in more than the efficient output of goods |
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Term
| Definition of gov program |
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Definition
| a combination of government activities producing output – analogous to an input production |
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Term
| Definition of Cost-Benefit Analysis |
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Definition
| a practical technique for measuring the incremental net benefit of a gov. project or investment |
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Term
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Definition
| measures social opportunity cost of the use of funds for a gov project.Ranked according to present value of discounted net benefits or according to ratio of the present value of the benefits to the present value of cost |
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Term
| Haig-Simons Definition of Comprehensive Income |
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Definition
| Taxable income = earnings + tranfers + capital gains |
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Term
| Flat-Rate Comprehensive Income Tax |
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Definition
| Similar to proportional tax rate structure. Fall in new wage causes a sub effect (work for leisure) unfavorable to work, income effect reduces consumption of leisure favorable to work |
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Term
| Flat-rate com. tax on savings/consumption |
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Definition
| Can cause decrease in savings due to reduction in net interest earned by the worker |
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Term
| Definition of Taxable income in the US |
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Definition
| comprehensive income - deductions, exclusions, exemptions |
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Term
| Definition of Gross Income |
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Definition
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Term
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Definition
| gross income less certain retirement contributions and allowable deductions plus some additions |
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Term
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Definition
| marginal tax benefit on an activity- the reduction in its price due to tax preferences (exclusions etc) |
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Term
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Definition
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Term
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Definition
| the value at which capital is used up in production |
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Term
| In short run, corporate income tax is |
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Definition
| completely borne by the owners |
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Term
| Comprehensive Consumption |
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Definition
| comprehensive income - savings |
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Term
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Definition
| Tax on comprehensive income. Would encourage econ growth, gain in efficiency in investment markets, increase excess of burden in labor markets |
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Term
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Definition
| Ad valorem levy on retail purchases, collected by seller, used by state and local gov |
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Term
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Definition
| Tax levied at all stages of production , used in Canada and the EU, but each seller is allowed to deduct tax paid on purchases from tax due on sales |
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Term
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Definition
| Value of accumulated savings and capital, evaluated through assessment, consisting of real/tangible/intangible person property |
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Term
| General Tax on wealth is equivalent to |
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Definition
| tax on capital income, does not effect labor income |
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Term
| Focus of wealth tax centers around |
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Definition
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Term
| Capitalization of property taxes |
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Definition
| If an asset is taxed while other assets are not its value can fall. Vt = Y/r+t |
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Term
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Definition
| Subsidies for housing, medical care, food. |
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Term
| Fix-allotment in-kind transfers |
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Definition
| ie food stamps. Can result in more consumption than would result with just a cash transfer |
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Term
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Definition
| TANF- temporary assistance to needy families. EITC - Earned income tax credit |
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Term
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Definition
| level of income equal to three times the cost of nutritionally adequate diet |
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Term
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Definition
| income and wealth must be below a certain level to qualify |
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Term
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Definition
| based on one's ability to work (disabilities, age, children etc) |
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Term
| Transfer payments have what kind of effects? |
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Definition
| sub and income effects unfavorable to work |
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Term
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Definition
| pensions for the aged, their survivors, and disabled. Tax finacned |
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Term
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Definition
| ie Social Security. Equal to the discounted present value of promised future pension benefits - funded entirely by current workforce |
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Term
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Definition
| the ratio of retiree's monthly benefit to monthly earnings in year prior to retirement |
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Term
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Definition
| Ratio of retirees to workers |
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Term
| Equation for needed SS tax |
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Definition
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