Why is it the case that a commodity tax on goods like food and shelter is sometimes seen as being regressive?
What will be an ideal response?
Items like food and shelter require a larger percentage of discretionary income for those in the
lower income brackets, than for those in higher brackets.
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Which of the following countries is not a member of NAFTA?
A) Canada. B) The United States of America. C) Mexico. D) All three countries form part of NAFTA.
Housing is a normal good. That means
a. that most people prefer to purchase their housing rather than rent it b. that most people tend to purchase more housing if its price falls. c. that people tend to purchase more housing if their income increases d. that most people live in houses e. the people tend to purchase more housing if its price rises
The standard of living in an economy is best measured by:
A. the inflation rate. B. output per person. C. total output. D. average labor productivity.
In the U.S. Steel case, the court ruled that:
A. even though a firm's behavior might be legal, the mere possession of monopoly power was in violation of the Sherman Act. B. only monopolies that unreasonably restrain trade are subject to antitrust action under the Sherman Act. C. when made by dominant firms, tying contracts are illegal, per se. D. the company violated the Clayton Act and therefore should be dissolved into several competing firms.