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| 5484694143 | Fiscal Policy | solving problems in economy using taxes & government spending // Pres. and Congress | 0 | |
| 5484695387 | Monetary Policy | solving problems in economy using money supply // Federal Reserve | 1 | |
| 5484699844 | Recession | Not enough money -F: decrease taxes, increase govt spending (pumps more $ to economy) -M: Federal Reserve increase money supply | 2 | |
| 5484717160 | Inflation | Too much money -F: increase taxes, decrease govt spending -M: Federal Reserve decreases money supply | 3 | |
| 5484721083 | Tax | a mandatory contribution taken by govt for public purposes | 4 | |
| 5484723377 | Purposes of a tax | 1. Finance govt spending (roads, education, police, etc.) 2. Protect certain industries (Ex: Smoot-Hawley Tariff, General Motors) 3. Discourage certain activities (sin tax: alcohol, cigarettes, gambling) 4. Encourage certain activities (tax deductions; recycling) 5. Regulate the economy (inflation:increase, recession:decrease) | 5 | |
| 5484740406 | Sources of Revenue at Federal, State, & Local levels | (F) 1. Income Tax 2. Social Security Tax (S) 1. Sales (4%; raised by city council) 2. State Income Tax (L) 1. Property (needs a vote to raise the tax) 2. Sales tax (5%) | 6 | |
| 5484741764 | Estate & Gift Taxes | When you die, a tax is owed to the govt based on your estate | 7 | |
| 5484753305 | 3 Types of Taxes | 1.) Progressive 2.) Regressive 3.) Proportional | 8 | |
| 5484756673 | Progressive Tax | As income increases, the tax rate % increases (income) | 9 | |
| 5484756674 | Regressive Tax | As income increases, tax rate % decreases (lump sum, sales, property); same $ amount | 10 | |
| 5484757963 | Proportional Tax | Everyone pays the same % amount (flat tax) | 11 | |
| 5484838620 | Sales tax | everyone pays same dollar ($) amount | 12 | |
| 5484860652 | Property tax | depends on property valuet | 13 | |
| 5484870300 | Benefits Received Theory | people who benefit from it should pay for it (gas taxes for roads) | 14 | |
| 5484871824 | Ability to Pay Theory | if you have the ability, you should pay more (income) | 15 | |
| 5484877130 | Personal Income Tax | -1913 -16th Amendment: Congress can set taxes on income -first couple of years, very minor tax (but quickly became major source of money) -#1 Source of $ for federal govt | 16 | |
| 5484903363 | Corporate Income Tax | taxing businesses (corporation considered a legal person); *double taxation (corporation and then owners pay personal income tax in form of dividend); AL has one of the smallest Corporate Income Tax | 17 | |
| 5484904353 | State Income Tax | 43 states currently have a state income tax; other 7 states have taxes on other things | 18 | |
| 5484904354 | Capital Gains Tax | tax you pay on the profits you earn from selling your stocks, bonds, etc. (CG lower than income); encourages you to invest | 19 | |
| 5484904355 | Payroll Taxes | taxes they take out on your paycheck (federal, state, and local withholdings; social security; medicare/medicaid) | 20 | |
| 5484905944 | Unemployment Tax | To get unemployment money: -needs to be fired/laid off -% of salary for a year or less -holds you over while you look for another job -taken out of your paycheck and some from boss | 21 | |
| 5484908281 | Occupation Tax | local income tax paid where you work (Ex: parents live in diff. cities and pay occupation tax but kids go to school in Auburn, so they pay $ to the schools near where they work instead of the schools their kids go to.) | 22 | |
| 5484908282 | Property Tax | someone is sent to determine how much the property tax is and can adjust the rates; diff. for diff. things (business > home); very low in AL | 23 | |
| 5484910049 | Excise Tax | extra tax on only one product (gas, cigs, alcohol); -"Earmarked"-money from excise must be used for a particular purpose -AL is most earmarked state (<80% taxes) | 24 | |
| 5484910050 | Direct Tax | tax directly on a person (income tax) | 25 | |
| 5484910051 | Indirect Tax | tax on goods and services (sales; excise) | 26 | |
| 5484911185 | Hidden Tax | tax you don't realize you're paying (gas, excise) | 27 | |
| 5484911186 | Laffer Curve | *more of a theory* As tax rate increases, tax revenue increases; but once you get past a point, revenues will fall bc ppl lose incentive -Govt's goal is to find the point |  | 28 |
| 5484914095 | Low Taxes Good | -attracts businesses -cheap for citizens -creates jobs, which creates money for tax revenues | 29 | |
| 5484914096 | Low Taxes Bad | -not much money for state (schools, potholes in roads) -prisons overfilled & understaffed -discourages businesses | 30 | |
| 5485248027 | Shifting a Tax (Tax Incidence) | measures who is really paying a tax & we can shift a tax on someone else (raise rent); making someone else (3rd party) pay tax for you | 31 | |
| 5485253380 | Elasticity of Demand for Product | determine size of boxes; more inelastic, more tax burden on consumer | 32 | |
| 5485259647 | box vs. triangle | -box: tax to govt (partly paid by consumer and producer) -triangle: society's loss, excess burden (losing revenue & benefit of the product) | 33 | |
| 5485268278 | More Inelastic | bigger burden on consumer | 34 | |
| 5485269307 | More Elastic | bigger burden on producer | 35 | |
| 5484931632 | National Debt | $19.8 Trillion | 36 | |
| 5484940468 | When & Where did Lotteries start? | Italy; 16th cent. | 37 | |
| 5484945519 | When and where was the first govt lottery? | England, later on in 16th cent. | 38 | |
| 5484946804 | How many original colonies had a lottery? | all 13 | 39 | |
| 5484952166 | What did lotteries help fund? | Many top universities (Harvard, Yale, Princeton) | 40 | |
| 5484954103 | When did lotteries start becoming illegal? | In late 1800s | 41 | |
| 5484956363 | When were there no lotteries? | By 1900s | 42 | |
| 5484959180 | What was the first state to allow lotteries? When? | New Hampshire; 1964 | 43 | |
| 5484964637 | What was the second state to allow lotteries? When? | New York; 1967 | 44 | |
| 5484966687 | What was the third state to allow lotteries? When? | New Jersey; 1971 | 45 | |
| 5484969798 | When did most of the North east states get lotteries? | mid-1970s | 46 | |
| 5484971637 | What was the first SE state to get lotteries? When? | Florida; 1987 -governor makes it for education | 47 | |
| 5484975301 | When did Georgia get lotteries? Why was it significant? | 1993; becomes model for everyone else; the new model earmarked for 3 programs 1.) HOPE 2.) Pre-K program 3.) Funding for technology in classrooms | 48 | |
| 5484981290 | When were lotteries in AL voted down? Who was the governor? | 1999; Governor Don Siegleman was for lotteries | 49 | |
| 5484987977 | Yes to Gambling | revenue, voluntary tax, doing it anyways but in other states, separation of church and state, entertainment, scholarship, tourism, jobs, education | 50 | |
| 5484987993 | No to Gambling | too late, corruption in govt, regressive, moral/religion, addiction, microscopic chance, unstable source of revenue, hurts local businesses, increase in crime, large % of revenues is eaten up by other administrative costs | 51 | |
| 5485005866 | GA's and FL's percentage of money from gambling | -50% prizes -38% education -11% administration -1% local | 52 | |
| 5485009695 | Top 3 Expenses of US Govt Spending | 1.) Social Programs 2.) Defense 3.) Interest on debt | 53 | |
| 5485011026 | Debt vs. Deficit | -Debt: all deficit (the total amount) you owe -Deficit: amount you overspend for time period (year) | 54 | |
| 5485031502 | Top Expense for State and Local | For both: #1 Education | 55 | |
| 5485037043 | Gramm-Rudman Act of 1985 | a balanced budget law (spend what you make, don't go over budget) -Supreme Court got rid of it | 56 | |
| 5485057904 | 5 Reasons some Economists/Politicians feel having Debts/Deficits are OK. | 1.) Stimulates the economy 2.) As a % of GDP, the debt is not much worse than other time periods 3.) Shows the strength of our economy. (We can handle it!) 4.) Keeps people interested in our economy (other nations) 5.) Emergency situations | 57 | |
| 5485063512 | Public Goods | good provided by the govt 1.) Non-rivalry/Shared Consumption (several can use it at the same time) 2.) Non-excludability/Exclusion Principle does NOT apply (I can't stop you from getting the benefits) -Ex: street lights, national defense | 58 | |
| 5485073795 | Free Rider Problem | caused inability to exclude and results in market failure; is when ppl receive benefits of a good w/o paying the costs, which is part of the reason the govt will provide these products for everyone & pay for the goods w/ taxes | 59 | |
| 5485092589 | Private goods | goods produced by the market; most good in economy are private goods 1.) Rivalry (when one person consumes it, it's not available to others) 2.) Excludability/Exclusion Principle DOES apply (you can exclude ppl from using the product) -Ex: hamburger, clothes | 60 | |
| 5485102580 | Market Failure | A situation in which the market does not efficiently distribute resources; either too few products are produced or too many products are made -Ex: Road Building - sparsely populated areas would not have any roads built if it were done privately, there would be no one to pay for them | 61 | |
| 5485115493 | Externalities | spillovers; when a third party receives some of the positive or negative impact but they had nothing to do with the decision | 62 | |
| 5485128129 | Negative Externalities | spillover costs; there will be an over-allocation of these products (too much is produced) -Ex: pollution -Solution: 1.) tax the producers, 2.) make laws to prevent the production | 63 | |
| 5485136130 | Positive Externalities | spillover benefits; there will be an under-allocation of these products (not enough will be produced) -Ex: Education; flu shot -Solution: 1.) Subsidy (opp. of a tax) to the producers, 2.) Govt could provide | 64 | |
| 5485149192 | Nonrivalry | One person's benefit doesn't reduce the benefit available to others (Govt provides) | 65 | |
| 5485153724 | Nonexcludability | There's no effective way of excluding individuals from the benefit of the good once it comes into existence (Got provides) | 66 |
