How can tax simplification be beneficial to the economy?
What will be an ideal response?
Tax simplification would free up resources in the economy. The complexity of the tax code has created an entire industry to assist taxpayers in preparing their tax forms. If tax simplification reduces the need for tax preparation assistance, the resources used in this industry could be allocated to some other productive endeavor. This is beneficial, as it would reduce wasted resources.
Simplifying the tax code would increase economic efficiency by reducing the time and trouble firms and households spend solely to reduce their tax payments.
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Which of the following is the best example of an investment in human capital?
a. an increase in the number of hours worked per week by worker in a job employing low-skilled labor b. the purchase of company stock by a worker c. a summer internship at a law firm filled by someone attending law school d. payments into a retirement pension plan by a skilled laborer
The demand for French Roast coffee is likely to be
a. elastic. b. inelastic. c. unit elastic. d. perfectly inelastic.
Externalities can be positive because
A. marginal damages do not last over time. B. utility can be impacted positively as well as negatively. C. there is no concept for marginal benefit. D. positive externalities are subsidies.
If the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital in dollars?
A) .5 B) 1 C) 2 D) 10