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17 Cards in this Set
- Front
- Back
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Public choice model |
A model that applies economic analysis to government decision making |
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Voting paradox |
The failure of majority voting to always result in consistent choices |
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Arrow impossibility theorem |
A mathematical theorem that holds that no system of voting can be devised that will consistently represent the underlying preferences of voters. |
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The median voter theorem |
The idea that the middle of a political choice is going to prevail. |
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Rent seeking |
- When individuals or firms use government policy to gain in the expense of others. |
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Logrolling |
This is when members of Congress help out an issue they dont care about so that they can get help with what they want. |
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Regressive taxes |
Taxes that become lower with Increase in income |
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Progressive taxes |
Taxes increase with amount of income |
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Marginal tax rate |
The fraction of each additional dollar of income that must be paid in taxes. |
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Average tax rate |
Total tax paid divided by total income. |
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Tax incidence |
The actual division of the burden of a tax between buyers and sellers. |
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Human capital |
Accumulation of knowledge and skills that workers acquire from formal training or form life experience. |
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Assortative mating |
This is when people marry people who have same level of education as them |
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Excess burden |
- Efficiency loss to the economy from a tax having reduced the quantity of a good produced. |
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Lorenz Curve |
- Shows income inequality |
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Poverty Line |
- Annual income equal to to 3 times the amount necessary to purchase minimum quantity of food required for adequate nutrition. |
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Poverty rate |
- % of population which is poor. |
