Measuring Producer Surplus with the Supply Curve
Give this one a try later!
Perpetuity
Give this one a try later!
, a bond that pays interest forever but the principal is never repaid
Equity Finance
Give this one a try later!
the sale of stock to raise money
A Tax on Sellers
Give this one a try later!
shifts the supply curve up by the amount of the tax
Date of Maturity
Give this one a try later!
the time at which the bond will be repaid
The Effects of a Tax
,Give this one a try later!
A tax on a good places a wedge between the price that
buyers pay and the price that sellers receive. The quantity
of the good sold falls.
The impact of a tax on a market outcome is the same
whether the tax is levied on buyers or sellers of a good.
When a tax is levied on buyers, the demand curve shifts
downward by the size of the tax; when it is levied on
sellers, the supply curve shifts upward by that amount. In
either case, when the tax is enacted, the price paid by
buyers rises, and the price received by sellers falls. In the
end, the elasticities of supply and demand determine how
the tax burden is distributed between producers and
consumers. This distribution is the same regardless of how
the tax is levied.
Adverse Selection
Give this one a try later!
a high-risk person is more likely to apply for insurance than a low-risk
person because a high-risk person would benefit more from insurance
protection
Identity
Give this one a try later!
, an equation that must be true because of the way the variables in the
equation are defined
Opportunity Cost
Give this one a try later!
Cost of the next best alternative use of money, time, or resources when
one choice is made rather than another
Utility
Give this one a try later!
a person's subjective measure of well-being or satisfaction
Loanable Funds
Give this one a try later!
all income that people have chosen to save and lend out, rather than use
for their own consumption, and to the amount that investors have chosen to
borrow to fund new investment projects
Give this one a try later!
Perpetuity
Give this one a try later!
, a bond that pays interest forever but the principal is never repaid
Equity Finance
Give this one a try later!
the sale of stock to raise money
A Tax on Sellers
Give this one a try later!
shifts the supply curve up by the amount of the tax
Date of Maturity
Give this one a try later!
the time at which the bond will be repaid
The Effects of a Tax
,Give this one a try later!
A tax on a good places a wedge between the price that
buyers pay and the price that sellers receive. The quantity
of the good sold falls.
The impact of a tax on a market outcome is the same
whether the tax is levied on buyers or sellers of a good.
When a tax is levied on buyers, the demand curve shifts
downward by the size of the tax; when it is levied on
sellers, the supply curve shifts upward by that amount. In
either case, when the tax is enacted, the price paid by
buyers rises, and the price received by sellers falls. In the
end, the elasticities of supply and demand determine how
the tax burden is distributed between producers and
consumers. This distribution is the same regardless of how
the tax is levied.
Adverse Selection
Give this one a try later!
a high-risk person is more likely to apply for insurance than a low-risk
person because a high-risk person would benefit more from insurance
protection
Identity
Give this one a try later!
, an equation that must be true because of the way the variables in the
equation are defined
Opportunity Cost
Give this one a try later!
Cost of the next best alternative use of money, time, or resources when
one choice is made rather than another
Utility
Give this one a try later!
a person's subjective measure of well-being or satisfaction
Loanable Funds
Give this one a try later!
all income that people have chosen to save and lend out, rather than use
for their own consumption, and to the amount that investors have chosen to
borrow to fund new investment projects
