Economics Study Guide

Tax

Affects others

Is the goal of economy to maximize employment or production?

Maximize Production. Employment is not connected to meeting demands.

Subsidy

Effects me and others.

GPA

Involves your grades. You can cheat on this.

Human Capital

Involves your skill. You can't cheat on this.

Dectuable

Is what you pay before your insurance company pays your bills.

Premium

Is what you pay to your insurance company.

What are Externalities?

Others are effected, not just me.

Is it healthy for an economy in the long run for machines to replace human workers?

Short term is a loss, but in the long run it will create more job and opportunities.

Tariffs

Tax on imported goods

What does Scarcity mean and who does it affect?

To run low or not have enough of something.

Should we raise minimum wage to be $15 an hour?

Yes, because some people work hard. Some people need money for their family. It will cause less poverty.