A reduction in tax expenditures _____
a. will cause tax revenues to rise
b. will cause government spending on social policy to rise
c. will cause inflation to rise
d. will reduce the tax base
a
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If Ron earns $50,000 in salary and pays income taxes of $15,000, and Harry earns $50,000 from investment dividends taxed at 20 percent, this would be
A. vertical inequity. B. horizontal inequity. C. vertical equity. D. horizontal equity.
The rate of product transformation refers to
a. how a consumer can trade one good for another while still maximizing his or her utility. b. how a firm can substitute one input for another and still maintain the same production level. c. how production of one good can be substituted for another while still using a fixed supply of inputs efficiently. d. how quickly a firm can produce a final good while starting with only natural resources.
A firm can use 50 workers and 10 machines, 70 workers and 9 machines, or 75 workers and 9 machines to produce 40 chairs. If each worker costs $20 and each machine is rented for $500, the economically efficient input combination is:
A. 75 workers and 9 machines. B. 50 workers and 10 machines. C. 120 workers and 19 machines. D. 70 workers and 9 machines.
Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s).Recall the Application. If the minimum average variable cost for switchgrass farmers is $40 per ton and the current price is $35 per ton, in the long run the switchgrass farmer will:
A. exit the industry. B. operate and lose money. C. make a positive economic profit. D. make a zero economic profit.