Week 3- Problem set Flashcards Preview

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Flashcards in Week 3- Problem set Deck (13):
1

When Payroll tax enacted:
worker wage
firm wage

Wage receives by worker falls.
Wage that firms have to pay rises.
Bad situation.

2

Rent control help-

Help poor people by making housing more affordable

3

Rent control dictates-

Maximum rent that landlords may charge tenants.

4

Congress sought that workers and firms pay-

Half and half for the FICA tax.

5

Payroll tax-

Tax on wages that firms pay their workers.
Ex: FICA tax.

6

Price floor-

Legal minimum price
Ex: minimum wage.

7

Tax burden-

Falls more heavily on the side of market that is less elastic.

8

Policymakers use taxes to-

Raise revenue for public purposes.
Influence market outcomes.

9

Price ceiling-

Legal maximum on price at which a good can be sold.

10

Tax incidence-

Distribution of tax burden btwn buyers and sellers.
Burden of tax shared among participants in a market.

11

When policymakers set price-

They obscure signals that normally guide allocation of society's resources.

12

Minimum wage dictates-

Lowest price employers may pay for labor.
Minimum wage that firms may pay for workers.
Have greatest impact for teenage labor.

13

Example of rent control-

Price ceiling.