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Economic decision maker (Household [single decision makers] (Household are…

- - - - two or more owner; easier than SP to raise funds; also easier to bankrupt
    - - Each member has only limited liability; easier to raise funds; limited decision-making of owner; income have take twice tax
    - - Single owner, easier to bankrupt
  - - - Is retail business owner and operated by consumers in order to reduce cost
    - - Reduce cost and increase profit
    - - Workers which are the owners shared all profits and lost, and make decisions together
- - - - The government will force it to lower its price and increase output
    - - Non -rival and available for all
    - - Divide the market and fix the price
      - By prohibiting collusion and other anti-competitive practice
    - - Government use taxes, subside and regulation to align private and public benefit and cost
  - - - Taxes provide the bulk of revenue at all levels of government
        
        Provincial government
        
        Relay on income and sale tax
        
        Local government
        
        Relay on property tax
        
        Federal government
        
        Relay on Individual income tax
        
        Tax principle and Tax incidence
        
        Principle
        
        Ability-to- pay tax principle
        
        Higher ability, more tax
        
        The benefit-received
        
        people should only have to pay for something if they receive a benefit from it
        
        Incidence
        
        Progressive taxiation
        
        Percentage increased as income increased
        
        Regressive taxation
        
        Percentage decrease as income increase
        
        Proportional taxation
        
        Same percentage of their income tax
- - - - Import tariff --> a tax on import
      - Import quota --> limit on quantity of import entering a country
      - Protect domestic industries
    - - Autarky--> at mid-point of PPF
      - A person or a country never have both comparative and absolute advantage
      - If the opportunity cost is same, there is no advantage