A 5 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming dynamic tax analysis?
A) The total revenue will be zero.
B) The total revenue will be between $0 and $5,000.
C) The total revenue will be $5,000.
D) There is not enough information to determine what revenues will equal.
Answer: B
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The time it takes for the policy actually to have an impact on the economy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
For most goods, the real-income effect of a price change is
A) small because the good accounts for a small part of the consumer's budget. B) small because the decision to buy a good depends only on the income of a consumer. C) large because the price of the good is in terms of the currency and the income of the person is also in terms of the currency. D) zero because the real-income effect only applies to durable goods.
When property rights are clearly defined, there is generally a
A. regulatory agency that handles externalities. B. common property problem. C. law that must be passed to ensure fairness. D. voluntary agreement that can be reached.