In England the Thatcher government substituted a "poll tax" for the local property tax. People took strong exception to the tax, which is basically a head or "lump sum" tax. The principle of taxation such a tax violates is called
a. the benefits principle.
b. the excess burden principle.
c. the ability-to-pay principle.
d. the constitutional principle.
c
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According to the monetarists, the primary cause of changes in real output and the price level is changes in ____________.
Fill in the blank(s) with the appropriate word(s).
Why does a tax change affect aggregate demand?
A. A tax change alters saving by an equal amount. B. A tax change alters imports and net exports. C. A tax change alters government spending by an equal amount. D. A tax change alters disposable income and consumption spending.
Refer to the diagrams. The case of an inferior good is represented by figure:
A. A.
B. B.
C. C.
D. D.
A monopolistically competitive industry is characterized by ________ concentration ratios and ________ entry barriers.
A. high; low B. low; low C. low; high D. high; high