The idea of horizontal equity in taxation implies that
A. equally situated individuals should be taxed equally.
B. unequally situated individuals should be taxed unequally.
C. benefits should be given first to those individuals who need them most.
D. the greatest tax burden should be borne by the wealthiest individuals.
Answer: A
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A) an open market sale of government bonds. B) to do nothing. C) an open market purchase of government bonds. D) to increase reserve requirements.
Ban Consultants A firm and its supplier are going to negotiate a deal every quarter. Since the supplier's cost is $10 million per quarter and the value to the firm is $14 million per quarter, there is $4 million per quarter to split between the two
However, they can hire a negotiation consultant for a quarter for $500,000 . If neither hires the consultant, each expects to get half of the $4 million pot. If only one hires the consultant, it expects to get three-fourths of the pot minus the consultant costs. If they both hire consultants, they cancel each other out and they expect to get half the pot minus the consulting costs. They expect to repeat this process every quarter for the foreseeable future. Can they agree to ban the consultants?
Consumers should purchase a good up to the point where MU = P
a. True b. False Indicate whether the statement is true or false
Employers can find themselves in an adverse selection problem if there are too:
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