Ch.8: The Burden of Taxation Flashcards
1
Q
The fall in total revenue when a taxis enacted
A
Deadweight Loss
2
Q
Dead weight loss is greatest when…
A
The supply/demand curve is elastic
3
Q
A tax has a deadweight loss because…
A
It induces buyers/sellers to change their behavior
4
Q
A graph of tax size against tax revenue
A
Laffer curve
5
Q
“Optimal tax rates,” Reagan and Laffer
A
Supply-side economics
6
Q
This is what effects total tax revenue the most. Also the direction of the “Laffer Curve”
A
Populace’s behavior
