Answer the following statements true (T) or false (F)
1. The levying of licensing fees for automobiles is an example of taxation based on the ability-to-pay principle.
2. The Social security tax is regressive because it applies only on income below a "cap" income level.
3. The probable incidence of the tax on business property is on consumers.
4. In general for an excise tax on a product, given supply, the more elastic is the demand for the product, the larger will be the portion of the tax shouldered by the buyers.
5. In general for an excise tax on a product, given supply, the more elastic is the demand for the product, the larger will be the portion of the tax shouldered by the buyers.
1. F
2. T
3. T
4. F
5. F
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The neoclassical theory of investment
A) links investment spending to stock prices. B) emphasizes that current investment spending depends positively on the expected future growth of GDP. C) emphasizes the role of real interest rates and taxes as determinants of investment. D) suggests that a downturn in real GDP will lead to a sharp fall in investment, which leads to further reductions in GDP through the multiplier.
A consumer is in equilibrium when the slope of his or her indifference curve is equal to his or her budget constraint
a. True b. False Indicate whether the statement is true or false
For which of the following goods is the income elasticity of demand likely highest?
a. tennis lessons b. allergy medication c. clothing d. cell phone contracts
A(n) __________ is a person who was previously employed, hasn't worked for some time, and is currently reentering the labor force
A) discouraged worker B) entrant C) reentrant D) job loser E) job leaver