Chapter 8-9 Flashcards
Indirect Tax
a tax on consumer products that provide revenue for governments
Specific Tax
a fixed amount of tax that is imposed upon a product
Percentage Tax
a tax that is a percentage of a good’s price
Market Ceiling
a maximum price put on a good or service to make it affordable to the average person
Market Floor
a minimum price set on a good or service that discourages consumers from purchasing it
Rival Good
a type of good that may only be possessed or consumed by a single user (finite)
Non Rival Good
public goods that are consumed by people but whose supply is not affected by people’s consumption
Excludable Good
a finite good that may be possessed or consumed by one individual
Non Excludable Good
public goods that cannot exclude a certain individual or group of individuals from using them
Merit Good
commodities that the public sector provides free or cheaply because the government wishes to encourage their consumption
Demerit Good
a good or service whose consumption is considered unhealthy
Public Good
users cannot be restricted from accessing them if they fail to pay for the service
Private Good
a product that must be purchased to be consumed, and consumption by one individual prevents another individual from consuming it
Common Good
typically natural resources like fishing grounds and forests where it is very difficult or expensive to exclude people from using them (rivalrous)
Collective Good
a good that benefits every individual belonging to some group, and where it is hard to exclude any individual from that benefit
