100Review Sheet307FA

100Review Sheet307FA - ECO 100 Exam #3 Review Sheet Note:...

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ECO 100 Exam #3 Review Sheet Note: If you have any questions about the review sheet, please talk to me, Jennie or Nellie. Distribution of Income Q 1. Indicate whether the following statements are true for Functional or Personal distribution of income: a) Shows income from the poorest 20% of families to the richest 20% of families b) Shows the shares of income accruing to the factors of production (land, capital, labor, entrepreneurship) Q 2. Connect the following resources and their payments: Land Interest Capital Wages Labor Profits Entrepreneurship Rent Q 3. What is the key differentiating characteristic of durable and nondurable goods and what would be examples of durable and nondurable goods? Types of Businesses Q 4. Fill in blanks: Sole Proprietorship Partnership Corporation # of owners 1 Set-up Simple Decision making Simple Liability Unlimited Ability to raise financial capital Limited Existence Dies with the owner Perpetual Solution: Sole Proprietorship Partnership Corporation # of owners 1 2 and more Unlimited Set-up Simple Simple Complicated Decision making Simple Can be complicated - unstable Can be complicated Liability Unlimited Unlimited Limited Ability to raise financial capital Limited Limited It’s “easy” Existence Dies with the owner Perpetual Notes Separation of ownership and control 6
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Government Spending Q 5. Give me examples of government spending on goods and services and transfer payments. What would be the greatest item in the US? Taxes Q 6. Connect taxation principles and their definitions: Ability to pay principle Taxes should be paid in proportion to the benefits received Benefits received principle Taxes should be paid by those with higher wealth an incomes Q 7. Indicate whether taxes are based on ability to pay or benefits received: a) Income tax b) Airline tickets taxes c) Estate tax d) Tolls e) Property tax f) Gas tax g) User charges Average tax rate is defined as follows (fill in the blanks) : ATR = …………………. . / ……………………… Q 8. Indicate whether this would be a feature of a progressive, regressive, or proportional tax: a)
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This note was uploaded on 04/03/2008 for the course ECO 100 taught by Professor O'brien during the Spring '08 term at Bradley.

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100Review Sheet307FA - ECO 100 Exam #3 Review Sheet Note:...

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