Which of the following tax structures creates a disincentive to earn more?
a. Proportional tax structure
b. Regressive tax structure
c. Digressive tax structure
d. Progressive tax structure
e. A combination of proportional and regressive tax structure
d
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A government surplus is
A) when it spends more than its income. B) when it owes more than what it is owed. C) when its income is higher than its spending. D) when it is owed more than what it owes.
A firm possesses too much capital if ________
A) the real rental cost of capital is equal to the marginal product of capital B) the real rental cost of capital is less than the marginal product of capital C) its investment spending exceeds its consumption outlays D) the real rental cost of capital is more than the marginal product of capital
The tax code in the United States allows for the deductibility of mortgage interest, but not for interest on credit cards. Why is this difference allowed to exist?
What will be an ideal response?
Economists play an important role in the complex debates over tax policy by
a. identifying efficiency as the most important goal of tax policy. b. identifying equity as the most important goal of tax policy. c. shedding light on the tradeoff between efficiency and equity in tax policy. d. None of the above is correct.