What is the ability to pay principle? Does the U.S. federal income tax follow this principle or not? Explain your answer
The ability to pay principle is simply that those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes. The federal income tax is a good example of this principle because the rich pay more taxes than the poor.
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Government-imposed limits on price movements are likely to
A. increase economic efficiency. B. decrease economic efficiency. C. leave economic efficiency unchanged. D. promote economic growth in the economy.
The slope of a curved line differs from that of a straight line in that
a. the numerical value of the slope of a straight line is different at every point, but is the same at every point for a curved line. b. the numerical value of the slope of a straight line is always higher than the numerical value of the slope of a curved line. c. the numerical value of the slope of a curved line is different at every point, but is the same at every point for a straight line. d. the numerical value of the slope of a curved line is an irrational number, but the numerical value of the slope of a straight line is always a rational number. e. straight lines are more realistic, but curved lines are not descriptively accurate for the real world.
A public good has the quality of excludability but not the quality of depletability
a. True b. False Indicate whether the statement is true or false
Suppose the Federal Reserve lowers the target on the interest rate in the Federal Funds market. The Federal Reserve will _____ the money supply and aggregate demand will _____
Fill in the blank(s) with correct word