Lecture 4-3 Taxes, Subsidies Flashcards
1
Q
The two parts that the consumer loss trapezoid is split into
A
Square and Rectangle
2
Q
What does the triangle represent in a trapezoid?
A
The amount of surplus loss as a result of decreased consumption
3
Q
What does the rectangle represent in a trapezoid?
A
The total amount the government makes in taxes
4
Q
Quantity is same as the free market
A
Head Tax
5
Q
Quantity changes compared to free market
A
Tax Widget
6
Q
Total Tax revenue peaks at a certain point
A
Laffer Curve
