SPEA V202 Exam 1 – Questions With Appropriate
Solutions
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Terms in this set (86)
What is WTS? willingness to supply
mandatory spending entitlement spending (i.e. Social Security,
Medicare/aid, etc.)
discretionary spending spending about which Congress is free to make
choices (i.e. military, transportation, housing,
education, etc.)
deficit when gov't spends more than it raises
debt taken out to fund deficit spending, amount of $
gov't owes to those we borrow from
federal-level tax income tax
state-level taxes sales tax
, local-level taxes property taxes
excise taxes special type of sales tax
what does the gov't do? redistribute resources, provides goods and services,
regulates behavior of producers and consumers,
raises revenue
deadweight loss social welfare loss resulting from not achieving
optimal outcome
demand curve describes how much of a certain good people
would buy at different prices
Law of Demand at higher prices, we buy less of a good. as prices
rise, Qd decreases
quantity demanded the amount of a good people are willing to buy at a
given price
utility the satisfaction/happiness/well-being a person
derives from consumption of a good or service
marginal utility utility derived from consuming one more unit of that
good
Diminishing Marginal Utility marginal utility declines with consumption
util one unit of utility
willingness to pay (WTP) highest price a buyer is willing to pay for a good,
converts utility into monetary value
marginal benefit the benefit or satisfaction gained from using one
more unit of a good or service
Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (86)
What is WTS? willingness to supply
mandatory spending entitlement spending (i.e. Social Security,
Medicare/aid, etc.)
discretionary spending spending about which Congress is free to make
choices (i.e. military, transportation, housing,
education, etc.)
deficit when gov't spends more than it raises
debt taken out to fund deficit spending, amount of $
gov't owes to those we borrow from
federal-level tax income tax
state-level taxes sales tax
, local-level taxes property taxes
excise taxes special type of sales tax
what does the gov't do? redistribute resources, provides goods and services,
regulates behavior of producers and consumers,
raises revenue
deadweight loss social welfare loss resulting from not achieving
optimal outcome
demand curve describes how much of a certain good people
would buy at different prices
Law of Demand at higher prices, we buy less of a good. as prices
rise, Qd decreases
quantity demanded the amount of a good people are willing to buy at a
given price
utility the satisfaction/happiness/well-being a person
derives from consumption of a good or service
marginal utility utility derived from consuming one more unit of that
good
Diminishing Marginal Utility marginal utility declines with consumption
util one unit of utility
willingness to pay (WTP) highest price a buyer is willing to pay for a good,
converts utility into monetary value
marginal benefit the benefit or satisfaction gained from using one
more unit of a good or service
