Supply and Demand and Taxes Flashcards
Supply:
The quantity of a good or service that producers are willing to offer at various prices
Demand:
The quantity of a good or service that consumers are willing to purchase at various prices
Price Determination:
How much we’re willing to buy and sell at a particular price
Equilibrium Point:
It’s a price/quantity point where sellers feel it’s worth selling a particular number of goods or services, and buyers are happy to buy that many for that price.
The Law of Supply and Demand:
If demand goes __, prices go __
If demand goes ____, prices go ____
If supply goes __, prices go ____
If supply goes ____, prices go __
If demand goes up, prices go up
If demand goes down, prices go down
If supply goes up, prices go down
If supply goes down, prices go up
Why does the government intervene in the economy?
- To regulate trade between consumers and producers
- To ensure a more equitable distribution of wealth and income among citizens
- To maximize the potential of resources
What two sectors take up the largest portion of the Quebec government expenses?
- Health and Social Services
- Education and Culture
What is the sole objective of the Generations Fund? What revenues Supply this fund
To reduce the public debt in Quebec.
revenue from a variety of sources like Hydro-Quebec, the mining sector, and a portion of the tax on alcohol.
What are municipal and school taxes used for?
- Financing public transportation
- Financing school transportation
- Financing School maintenance
What taxes apply to the purchase of goods and services?
- Goods and services tax (GST)
- Quebec sales tax (QST)
Explain Eco-fees:
Eco-fees are overseen by the Electronic Products Recycling Association, an organization independent of the government. These fees are used to finance a recovery and reclamation program for electronic devices.
Quebec government revenues:
- Federal transfers
- Consumption tax
- Income and property tax
