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18 Cards in this Set

  • Front
  • Back
what are external costs and benefits
the external costs and benefits are the effects that the decision-makers ignore in the markets
Clayton Act of 1914
prohibits certain business practices
Federal trade commission act 1914
created the federal trade commission to enforce the antitrust laws
Celler-Kefauver antimerger act
it broadened the Clayton Act which applied only to horizontal mergers and included any merger that lessens compeition or tends to create a monopoly
the programs to help ppl fall into what two categories
1) programs to increase income and the standard of living
2) programs to eliminate the causes of poverty and economic disadvantage
what are subsidies
it is financial aid
how does the federal government spend money
1)direct benefit payments to individuals
2)national defense
3)net interest
what is an excise tax
it is a tax on the sale/manufacture of a specific item
what are the purposse of the government collecting taxes
1) pay the cost of government
2) protect selected industries
3)discourage activities the government deems harmful
4)encourage certain activities
what is tax incidence
refers to the final impact of a tax; who will really have to pay it
who should pay taxes
1) depending on the benefits-received
2) depending on a persons ability to pay
what is proportional tax
one that takes the same percentage of all incomes
what is a progressive tax
one that takes a larger percentage of a higher income and a smaller percentage of a lower income
what is the opposite of a "flat tax" progressive tax
a proportional tax
what are regressive taxes
these take a higher percentage of taxes from low-income persons than from high-income persons. sales taxes are regressive
what are the four kinds of federal taxes
1)personal income
2) social insurance
3) corporate income
what is the gross debt
it is the total of all the federal governments ious
what are the concerns resulting from the deficit
1)rising annual interest payments on the debt
2)large deficits might lead to higher interest rates
3)deficits and private business deficit means less investment in businesses and fewer jobs+lower productivity
4)it may cause inflation since the govt. can print out more money to finance its deficits which would increase the amt of money faster than the suppplies of goods and services which ppl can spend it on