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SALES TAX: A tax on retail sales. This is major source of revenue for many state and local governments. Because poorer people tend to spend a larger share of their income on stuff covered by sales taxes, it tends to be a regressive tax. To reduce this regressiveness, some state and local governments excluded items like food and medicine.

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Lesson 2: Economic Science | Unit 4: Science and Practice Page: 16 of 20

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  • The hypothesis, theory, and verification process associated with a presumed relationship between course grades and class seating.
  • Different ways that an hypothesis relating grades and class seating can be stated.
  • The components of a possible 'intuitive' theory explaining grades and class seating.
  • How a hypothesized relationship between grades and seating might be tested using real world data.

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AGGREGATE DEMAND DECREASE, LONG-RUN AGGREGATE MARKET

A shock to the long-run aggregate market caused by a decrease in aggregate demand resulting in and illustrated by a leftward shift of the aggregate demand curve. A decrease in aggregate demand in the long-run aggregate market results in an increase in the price level but no change in real production. The level of real production resulting from the aggregate demand shock is full-employment real production.

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Today, you are likely to spend a great deal of time searching the newspaper want ads trying to buy either a rechargeable battery for your cell phone or a T-shirt commemorating the 2000 Olympics. Be on the lookout for door-to-door salesmen.
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In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
"Those who are blessed with the most talent don't necessarily outperform everyone else. It's the people with follow-through who excel. "

-- Mary Kay Ash, May Kay Cosmetics founder

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