AP Econ Chapter 16 & 17 by Diana Ramirez-155003500 https://padlet.com/155003500/v6numywfxmkt Made with an open mind en-us 2018-01-16 16:08:21 UTC 2026-02-12 01:59:56 UTC hello@padlet.com Regressive Tax 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/221765127 A tax is regressive if its average rate declines as income increases. Such a tax takes a smaller proportion of income as income increases. ]]> 2018-01-16 16:12:17 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221765127 Property Taxes 147003694 https://padlet.com/155003500/v6numywfxmkt/wish/221765305 A certain percentage of taxes on household where the local government obtain the most income from taxes. ]]> 2018-01-16 16:12:37 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221765305 Government Purchases 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/221765325  The money that a government spends procuring goods or services from the private sector. Examples include a local government hiring a company to repair a road or the national government buying artillery for the military.]]> 2018-01-16 16:12:40 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221765325 Average Tax Rate 155003561 https://padlet.com/155003500/v6numywfxmkt/wish/221765893 -the total tax paid divided by total taxable income]]> 2018-01-16 16:13:45 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221765893 Transfer Payments 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/221766042 Cash payments made by the government to people who do not supply goods, services, or labor in exchange for these payments. They include Social Security benefits, veterans' benefits, and welfare payments.


]]> 2018-01-16 16:14:00 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221766042 Proportional Taxes 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/221766577 A tax is proportional if its average rate remains the same regardless of the size of the income. These taxes are often referred to as "flat taxes"]]> 2018-01-16 16:15:03 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221766577 Personal Income Tax 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/221766642 tax on income earned (wages, tips, earnings on savings); progressive; direct; based on ability to pay principle]]> 2018-01-16 16:15:12 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221766642 Benefits-received principle 147003694 https://padlet.com/155003500/v6numywfxmkt/wish/221767292 The benefits-received principle of taxation asserts that households should purchase the goods and services of government in the same way the buy other commodities. 
Those who benefit more from the government should pay for the taxes necessary to finance them. ]]> 2018-01-16 16:16:20 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221767292 Marginal Tax Rate 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/221767324 The rate paid on the last dollar earned, calculated by taking the ratio of the change in the change in income


]]> 2018-01-16 16:16:24 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221767324 Tax Incidence 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/221767342 The division of a tax burden between buyers and sellers

Tax Incidence w/ Elastic Demand]]> 2018-01-16 16:16:26 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221767342 Payroll Taxes 155003561 https://padlet.com/155003500/v6numywfxmkt/wish/221767870 -taxes on wages and salaries
-for financing Social Security and Medicare
-employer and employees pay these taxes equally]]> 2018-01-16 16:17:35 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221767870 Corporate Income Tax 155003561 https://padlet.com/155003500/v6numywfxmkt/wish/221767940 - levied on corporation's profit
-for almost all corporations, tax rate: 35 percent]]> 2018-01-16 16:17:45 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221767940 Sales and Excise Tax 155003561 https://padlet.com/155003500/v6numywfxmkt/wish/221768072 -on commodities/ purchases 
-Sales: cover wide range of products, calculated as a percentage of the price paid for the product
-Excises: levied individually on small, select list of commodities, levied on a per-init basis]]> 2018-01-16 16:18:00 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221768072 Efficiency Loss of a Tax 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/221768316 This loss is society sacrifice of net benefit, because the tax reduces production and consumption of the product below their levels of economic efficiency, where marginal benefit and marginal cost are equal.]]> 2018-01-16 16:18:27 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221768316 Ability-to-pay principle 147003694 https://padlet.com/155003500/v6numywfxmkt/wish/221769481 The tax burden should be apportioned according to taxpayers income and wealth. 

]]> 2018-01-16 16:20:46 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221769481 Progressive tax 147003694 https://padlet.com/155003500/v6numywfxmkt/wish/221770512 A tax is progressive if its average rate increases as income increases. Such a tax claims not only a larger absolute dollar amount but also a larger percentage of income as income increases. ]]> 2018-01-16 16:22:52 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221770512 Tax Incidence w/ Inelastic Demand 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/221771692 2018-01-16 16:25:08 UTC https://padlet.com/155003500/v6numywfxmkt/wish/221771692 Asymmetric Information 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223418552 unequal knowledge possessed by the parties to a market transaction]]> 2018-01-22 16:35:12 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223418552 Moral Hazard Problem 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223419589 the tendency of one party to a contract or agreement to alter her or his behavior

Ex. drivers may be less careful when they are driving because the car has insurance]]> 2018-01-22 16:36:52 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223419589 Paradox of Voting 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/223421098 he act of voting involves a benefit and a cost to the voter. A benefit is derived if the voter changes the outcome of the election to the one that is desired (in such a case, the voter is said to be pivotal). ... A rational voter should therefore not vote. The paradox is that electoral turnout is relatively high.]]> 2018-01-22 16:39:12 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223421098 Adverse-Selection Problem 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223422202 this problem arises when information known by the first party to a contract or agreement is not known by the second party, and as a result, the second party incurs major costs]]> 2018-01-22 16:41:05 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223422202 Adverse-Selection 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223422328 2018-01-22 16:41:18 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223422328 Adverse-Selection 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223422329 2018-01-22 16:41:18 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223422329 Adverse-Selection Problem 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223422332 2018-01-22 16:41:18 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223422332 Median-voter model 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/223423108 The median voter theorem states that "a majority rule voting system will select the outcome most preferred by the median voter". The median voter theorem rests on two main assumptions, with several others ]]> 2018-01-22 16:42:34 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223423108 Government failure 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/223423685 Government failure is a situation where government intervention in the economy to correct a market failure creates inefficiency and leads to a miss allocation of scarce resources.]]> 2018-01-22 16:43:35 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223423685 Public Choice Theory 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223423798 the economic analysis of government decision-making, politics, and elections]]> 2018-01-22 16:43:46 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223423798 Principal-agent problem 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/223425338 n political science and economics, (also known as agency dilemma or the agency problem) occurs when one person or entity (the "agent") is able to make decisions on behalf of, or that impact, another person or entity: the "principal".]]> 2018-01-22 16:46:11 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223425338 Collective-action problem 156004291 https://padlet.com/155003500/v6numywfxmkt/wish/223425833 Collective action problem. The term "collective action problem" describes the situation in which multiple individuals would all benefit from a certain action, but has an associated cost making it implausible that any individual can or will undertake and solve it alone.]]> 2018-01-22 16:47:00 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223425833 Logrolling 155003500 https://padlet.com/155003500/v6numywfxmkt/wish/223426403 the trading of votes to secure desired outcomes]]> 2018-01-22 16:47:59 UTC https://padlet.com/155003500/v6numywfxmkt/wish/223426403