Briefly evaluate the advantages and disadvantages of a lump-sum tax
A lump-sum tax is the most efficient tax because the tax does not distort incentives; thus, a lump-sum tax does not create a deadweight loss. But because a lump-sum tax places the same tax burden on poor people as rich people, most would view it as unfair.
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In which of the following situations would the Fed conduct contractionary monetary policy?
A) The Fed is worried that deflation will become a problem. B) The Fed fears that unemployment is climbing above the natural rate. C) The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP. D) The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP.
The country with the highest degree of central bank independence in the period 1973-88 was ________
A) the United States B) New Zealand C) Spain D) Germany
McDonald's restaurant located near the high school offered a Tuesday special for high school students. If high school students showed their student ID cards, they would be given 50 cents off any medium combination meal
This practice is an example of: A) collusion. B) price discrimination. C) two-part tariff. D) bundling. E) tying.
Under EPA regulations, a factory
A. must pay for the right to pollute. B. can increase air pollution from its grinding process if it decreases air pollution from its smelting process. C. cannot under any circumstances build a polluting factory in an area where pollution standards are not being met by existing firms. D. can pay off regulators in order to continue operations business as usual.