AP Microeconomics Vocabulary Builder: Efficiency, Equity, and the Role of Government 1 5 7 9 11 12 13 14 15 19 20 21 22 2 3 4 6 8 10 16 17 18 - - - - Down 2. One portion of a data set divided into five equal portions. 3. Tax in which income tax rates rise as income rises. 4. ____ __ _____ _____ _____ _____ - ____ problem: When the unrestricted use of a resource leads to overuse, and the net marginal value of an additional use drops to zero. (2 words) 6. Tax in which tax rates fall as income rises. That is, people with higher income pay a lower average tax rate. 8. ____ - - ____ principle of taxation: Those who are more able to pay taxes should be taxed more heavily. (3 words) 10. resource: A resource, such as timber, fish, or fresh water, that can renew itself over a relatively short period. 16. curve: A curve showing how income is distributed in an economy. 17. tax: A tax on goods purchased based on a percentage of the purchase price. 18. market : The result when unregulated markets produce socially undesirable outcomes. Causes