Adam Smith noted that when public expenditures are undertake for the general benefit of everyone in a society then _____
a. there is considerable conflict between the benefit principle and the ability-to-pay principle
b. there is no conflict between the benefit principle and the ability-to-pay principle
c. the benefit principle provides little guide to tax policy
d. the ability-to-pay principle provides little guide to tax policy
b
You might also like to view...
The U.S. monetary policy implemented in 2008 was an attempt to
A) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure and thereby increasing AD. B) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing SAS. C) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing AD. D) decrease the exchange rate in order to boost net exports, thereby increasing AD.
It is sometimes claimed that garbage collectors are paid more than elementary school teachers. If this is true, one reason might be
a. the difference in working conditions b. that school teachers are usually women c. that the supply of teachers is small d. that the demand for teachers is small e. that the market does not value teachers
In long-run equilibrium, employment is at full employment and unemployment is at the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
If we follow the laissez-faire prescription and allow wages, prices, and interest rates to vary in the economy, then which of the market self-adjustments below would help close a contractionary gap in the absence of government policy intervention?
a. Fall in product price b. Increase in product price c. Increase in interest rate d. Fall in wage rate