The Reallocation of Resources and the Redistribution of Income (HSC SSCE Economics): Flashcards
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10 cards from this deck
Resource reallocation
Resource reallocation
Gov't shifts production patterns in the economy
Direct tax
Direct tax
Tax that cannot be passed on to others (e.g., income tax)
Indirect tax
Indirect tax
Tax that can be passed on to others (e.g., GST)
Quintiles in income distribution
Quintiles in income distribution
Groups each comprising 20% of the population
Progressive tax
Progressive tax
Higher earners pay greater proportion of income as tax
Regressive tax
Regressive tax
Higher earners pay smaller proportion of income as tax
ART (Average Rate of Tax)
ART (Average Rate of Tax)
Proportion of total income paid as tax
MRT (Marginal Rate of Tax)
MRT (Marginal Rate of Tax)
Proportion of income increase paid as tax
Australia's tax-free threshold
Australia's tax-free threshold
AUD 18,200
Means testing
Means testing
Eligibility for benefits based on income or assets