There is a possibility that a national sales tax will be implemented. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over
A. efficiency.
B. economic growth.
C. economic stability.
D. equity.
Answer: D
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Refer to the figure above. If A forms a customs union with B, the value of trade diversion will be
A) $0. B) $10,000. C) $20,000. D) $40,000.
While it is not certain that U.S. leadership will continue into the next generation, the nation will continue to enjoy the abundance it has enjoyed in the past
a. True b. False Indicate whether the statement is true or false
Nominal GDP is GDP
A) using current market values. B) during a recession. C) minus depreciation. D) after adjusting for any price changes. E) that ignores depreciation.
Commodities that last less than three years and may be consumed very quickly are called:
A) durable goods B) nondurable goods C) services D) none of the above