ch 12 macroeconomics

Federal, state and local goverment outlays for goods and services, including transfer payments.

• Income taxes
• Social insurance taxes
• Corporate Income Taxes
• Excise taxes

The concept that those whose benefit from goverment expenditures should pay the taxes that finance their benefits.

The concept that those who have the higher income can afford to pay greater proportion at their income in taxes, regardless of benefits received.

A tax that charges a higher % of income as income rises.

A tax that charges a lower % of income as income rises.

A tax that charges the same % of income regardless of the size of income. Also called the flat-tax rate.

The analysis of the goverment's decision making process for allocating resources.

The comparasion of the aditioanl reward and cost of an economic alternative.

Occurs when the goverment approves programs that benefits only a small group within society, but society as a whole pays the cost.

The voter's choice to remain uninformed because the marginal cost of obtaining information is higher than the marginal benefit from knowing it.