- 20.1: Use a circular flow diagram to show how the allocation of resources...
- 20.2: What do economists mean when they say government purchases are exha...
- 20.3: What are the main categories of government spending? What are the m...
- 20.4: What is the most important source of revenue and the major type of ...
- 20.5: For state and local governments, what are the three most important ...
- 20.6: How do the top two categories of federal employment differ from the...
- 20.7: Distinguish between the benefits-received and the ability-topay pri...
- 20.8: What is meant by a progressive tax? A regressive tax? A proportiona...
- 20.9: What is the tax incidence of an excise tax when demand is highly in...
- 20.10: Given the inelasticity of cigarette demand, discuss an excise tax o...
- 20.11: advanced analysis Suppose the equation for the demand curve for som...
- 20.12: Is it possible for a country with a regressive tax system to have a...
- 20.13: last word Does a progressive tax system by itself guarantee that re...
Solutions for Chapter 20: Public Finance: Expenditures and Taxes
Full solutions for Microeconomics | 21st Edition
average total cost
total cost divided by the quantity of output
a certificate of indebtedness
fluctuations in economic activity, such as employment and production
money that takes the form of a commodity with intrinsic value
the value of everything a seller must give up to produce a good
the quantity supplied and the quantity demanded at the equilibrium price
a banking system in which banks hold only a fraction of deposits as reserves
a good for which, other things being equal, an increase in income leads to a decrease in demand
the use of borrowed money to supplement existing funds for purposes of investment
the ease with which an asset can be converted into the economy’s medium of exchange
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
a situation in which a market left on its own fails to allocate resources efficiently
total revenue minus total cost
goods that are neither excludable nor rival in consumption
the tax revenue that the government has left after paying for its spending
the equation M × V = P × Y, which relates the quantity of money, the velocity of money, and the dollar value of the economy’s output of goods and services
the production of goods and services valued at constant prices
total revenue (for a firm)
the amount a firm receives for the sale of its output
the costs that parties incur in the process of agreeing to and following through on a bargain
the idea that taxpayers with a greater ability to pay taxes should pay larger amounts