New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here


by: Mrs. Rhianna Cassin


Mrs. Rhianna Cassin
Virginia Commonwealth University
GPA 3.55

George Hoffer

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

George Hoffer
Class Notes
25 ?




Popular in Course

Popular in Economcs

This 3 page Class Notes was uploaded by Mrs. Rhianna Cassin on Wednesday October 28, 2015. The Class Notes belongs to ECON 211 at Virginia Commonwealth University taught by George Hoffer in Fall. Since its upload, it has received 12 views. For similar materials see /class/230671/econ-211-virginia-commonwealth-university in Economcs at Virginia Commonwealth University.

Similar to ECON 211 at Virginia Commonwealth University


Reviews for PRIN OF ECON


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/28/15
ECON 211 Spring 2010 Public Finance TermsOutline The Role of GovernmentPublic FinanceIssues in Taxation Ch 1012 Views of role of government Relative size of G GDP around the world negative externalities positive externalities irrelevant externalities externalities effect on market output excludability where a person can be prevented from using it rival in consumption one persons use diminishes another person using it public good neither excludable nor rival in consumption after you use it its still there for others to use and you cannot stop others from using it example VCU Siren national defense private good rival in consumption example once you buy a tie no one else can have that tie social cost 2 private costs of producers costs to bystanders affected adversely by pollution common resource rival in consumption but not excludable example fish in the ocean natural monopoly excludable but not rival in consumption example cable tv fire protection free rider problem a person that receives the benefit ofa good without paying for it merit good goods and services provided free for the benefit of society by the government like education and vaccinations Budget has 3 Functions federal state and local 1 Allocation oldest function to spend tax money to serve the public community 2 Redistribution robin hood to balance out the private sector was established during the New Deal does not work with stateslocality 3 Stabilization cash for clunkers All taxes are based on 2 f A 21 principles 1 benefits principle oldest and liked by conservatives pay taxes based on the benefits they receive from government services ex tax on airfare if you don t y you don t get taxed as well as gas amp toll roads problems national defense protecting people or land welfare the poor should pay higher taxes 2 ability to pay principle equal sacrifice taxes should be levied on a person based on their ability to shoulder the burden a horizontal equity taxpayers with similar abilities to pay taxes should pay the same amount b vertical equity taxpayers with greater ability to pay taxes should pay a higher amount dead weight loss from taxation result when taxes distort the decisions that people make cost of administration burdens taxpayers bear while complying with tax laws regressive tax high income taxpayers pay a smaller fraction of their income than do low income taxpayers proportional tax where high income and low income tax payers pay the same fraction ofincome progressive tax high income tax payers pay a larger fraction of their income than do low income taxpayers tax base tax rate tax enforcement tax incidence who bears the tax burden marginal tax rate the extra taxes paid on an additional dollar ofincome average tax rate total taxes paid total income tax credit expenditure that you make that you can take directly off what you owe the government worth same amount no matter which tax bracket you re in tax deduction expenditure that you make that you can take offyour income worth depends on income higher bracket greater deduction personal exemption amount an individual can exclude from their taxable income 2008 it was 3500 indexation index taxes to the cost of living tied to the in ation rate personal exemption in 2008 was 3500 in 2009 it was 3650 log rolling A practice common in the Us Congress and in many other legislative assemblies in which two or more legislators agree for each to trade his vote on one bill he cares little about in exchange for the other s vote on a bill that is personally much more important to him Why is tax deduction worth different amounts to different people Why is corporate income tax 10 of revenue a quotbadquot tax despite its popularity 1 No one has determined who pays it 2 Double taxation of capital profits effective tax burdens by income class capital gain profit you make from selling an asset capital gains tax indexation of taxes bracket creep International Finance and Trade Ch 9 31 Comparative Advantage How trade increase consumer and producer surplus Tariff a how they make us worse off b how they can be justified Import Quota Voluntary Export Restraint V ER Dumping Infant Industries Tariff Nontariff barrier to trade Monetary side of trade 1 Balance of payments historical account of economic transactions between one country and the rest of the world a current account drives everything b capital account trade deficit an excess of imports over exports trade surplus an excess of exports of imports Fixed Exchange Rate devaluation when the value of a dollar goes down revaluation exchange rate determination movement of D amp S curves for currency amp impact on exchange rates impact of exchange rate on prices ofimports and exports currency appreciation increase in the value of a currency as measured by the amount of foreign currency it can buy currency depreciation a decrease in the value of a currency as measured by the amount of foreign currency it can buy dirty oating rates why is this done freely oating exchange rates


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.