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12th grade > Micro Econ > Flashcards

Micro Econ Flashcards

1
Q

Progressive tax

A

imposes a higher percentage rate of taxation on those with higher income

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2
Q

Regressive tax

A

which imposes a higher percentage rate of taxation on low incomes than on high incomes. For example, if the state sales tax were 5%, the person with the lower income would pay a greater percentage of their total income in sales tax.

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3
Q

Proportional tax

A

imposes the same percentage of taxation on everyone, regardless of income. income tax

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4
Q

perfect competition

A 
very many firms
identical products
no barriers to entry
price taker
no nonprice competition
highly efficient
long run: normal profit
agriculture-does not exist
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5
Q

monopolistic competition

A 
many firms
differentiated products
few barriers
little price setting power
many nonprice competition
not as efficient as PC
no long run profit

fast food, retail

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6
Q

oligopoly

A 
few firms
differentiated
not easy entry
some price setting power
little nonprice competition
not as efficient as PC
yes: long run profit

cars, cereal
COLLUSION

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7
Q

monopoly

A 
one firm
one of a kind product
absolute barrier
price setter
some nonprice competition
inefficient
high long run profit

rural gas

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8
Q

technical monopoly

A

patent/copyright

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9
Q

natural monopoly

A

watertreatment facility, public, little money, price regulated by gov

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10
Q

government monopoly

A

gov owned or has a license

post office

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11
Q

normal profit

A

enough to cover all cost

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12
Q

econ profit

A

cover all cost with left over

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13
Q

allocative efficiency

A

producing as much as they can to meet needs of society w/o losing money

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14
Q

productive efficency

A

producing at lowest possible price

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15
Q

Perfect competition graph

A

industry graph: demand supply (price/quantity)
ATC on top of AVC
straight mr

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16
Q

profit in pc

A

profit maximizing point straight down to ATC

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17
Q

profit maximizing point

A

MC= MR

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18
Q

long run PC

A

more ppl go in n supply increase which lowers price/MR

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19
Q

MR

A

largest amt of money you make

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20
Q

PC short run econ profit

A

MR on top of ATC/AVC

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21
Q

PC short run loss

A

MR in the middle

22
Q

PC short run, shut down

A

touches the bottom one/ AVC

23
Q

PC normal profit

A

touches top one ATC

24
Q

Fixed cost

A

doesnt change w/ amt of output, space btw ATC n AVC

rent

25
Q

total cost

A

fixed + variable cost

26
Q

marginal cost

A

cost of producing one more unit

27
Q

PC econ profit to long run

A

industry graph

increase in supply

28
Q

PC normal to loss

A

industry graph decrease in supply

29
Q

Monopoly

A

ATC below alllocatively efficient point

proft max straight up to demand= unregulated price/quantuy

profit: Atc to demand

30
Q

Monopoly

allocatively efficient point

A

MC= D

31
Q

imperfect competitor

A

price is always lower than mr

32
Q

profit

A

Revenue-cost

33
Q

deadweight Monopoly

A

triangle next to profit
loss to society

increase deadweight= decrease surplus

34
Q

Consumer surplus

A

triangle top of profit
ppl expect to pay more but the price is actually lower

consumer+ producer= total surplus

35
Q

Monopoly highest of point of total revenue

A

MR=0

Max total rev: straight up to Demand

36
Q

inelastic Monopoly

A

price decrease
total revenue decrease
right

37
Q

elastic Monopoly

A

decrease price,
total revenueincrease
left

38
Q

Monopoly supply curve

A

on MC, above ATC

39
Q

single price monopolist

A

change price for spec condition

like movie/plane tickets

40
Q

monopolistic competition

long run

A

profit maximizing point up to demand. ATC touches

normal profit

41
Q

monopolistic competition short run

A

same as monopoly

profit: D to atc

42
Q

monopolistic competition lost

A

ATC abov demand

43
Q

Extranality

A

something that affects a person that has nothing to do w/ making the product or using it.
cost that firm pays is external, not on balance sheet

44
Q

sole proprietorship

A 
one person owns it
most common
limited life
unlimited liability
difficult to raise money
45
Q

patnership

A 
more than one owner
accounting, lawyer, doctor
least common
unlimited liability
limited life
easier to raise money than propri
46
Q

coporation

A 
raise money by selling stocks
unlimted life
limited liability
owners have little control
double taxation (coportate n personal income)
dividend: periodic paycheck
47
Q

public goods

A

paid for by tax
nonexcludable (nothing prevents usage
nonrival (everyone can use at the smae time)

48
Q

common goods

A

nonexcludable
rivals
(fish/water source

49
Q

total revenue- monopoly

A

profit rectanle extended down

50
Q

negative externalities

A

cost push
P/Q graph
D= marginal profit
S= marginal cost

decrease in supply

51
Q

postive externailities

A

demand pull

D= marginal benefits

12th grade (39 decks)

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