Over a period of years, many European countries replaced their transaction taxes with a value added tax. Give two reasons why this was done
What will be an ideal response?
The first reason why this was done was because transaction taxes are inefficient because they tax the same good multiple times. The second reason this was done was to "harmonize" income tax rates among members of the European Union so one country would not have a government-subsidized advantage over the others.
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Historically, why did the import-substitution strategy become popular among developing nations?
What will be an ideal response?
The ________ of the term structure states the following: the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a term premium that responds to supply and
demand conditions for that bond. A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
The optimal bidding strategy for a second-price auction is
a. To bid your true value b. To shade your bid well below your true value c. To shade your bid just a little below your true value d. To size up your competition to determine how much to shade your bid
The number of tools or machines each worker has to work with measures the
A. labor force participation rate. B. productivity of workers. C. average wage rate of workers. D. capital per worker ratio.