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Basic to the notion of social contract theory is the notion that the right to rule is based on the consent of the governed.
Laffer Curve
A theoretical representation of the relationship between tax rates and the amount of tax revenue collected by governments, suggesting that increasing tax rates beyond a certain point is counter-productive for raising tax revenue.
GDP
Stands for Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.
Marginal Tax Rates
The rate at which tax is charged on the last dollar of income earned, indicating the percentage of additional income that will be taxed.
Monetarism
An economic theory that emphasizes the role of governments in controlling the amount of money in circulation as a primary method for stabilizing the economy and controlling inflation.
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