Lecture 4-3 Taxes, Subsidies Flashcards Preview

Intro To Microeconomics > Lecture 4-3 Taxes, Subsidies > Flashcards

Flashcards in Lecture 4-3 Taxes, Subsidies Deck (6)
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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