Based on information provided in the textbook, which of the following statements is true regarding taxing millionaires and the budget deficit in 2012?
A) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget deficit would have been completely eliminated, and a budget surplus would have been incurred.
B) If the government had taxed all income earners who earned more than $1 million a 50 percent income tax rate, the budget deficit would have been completely eliminated.
C) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget deficit would have fallen but not been completely eliminated.
D) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget would have been balanced.
C
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The Coase Theorem implies that when there are no costs to trading, _____
a. resources will move to their most valued uses, depending upon who gets the initial property rights b. resources will move to their most valued uses, regardless of who gets the initial property rights c. resources might be misallocated, depending upon the who gets the initial property rights d. resources might be misallocated, regardless of who gets the initial property rights
Government intervention in the farm economy that aims to create for farmers a constant or near constant level of purchasing power is called
a. partial rationing b. parity pricing c. income allotments d. price ceilings e. deficiency subsidization
When can two countries gain from trading two goods?
a. when the first country can only produce the first good and the second country can only produce the second good b. when the first country can produce both goods, but can only produce the second good at great cost, and the second country can produce both goods, but can only produce the first good at great cost c. when the first country is better at producing both goods and the second country is worse at producing both goods d. Two countries could gain from trading two goods under all of the above conditions.
Suppose that inventory investment is $20 billion and (total) investment is $680 billion. What does purchases of newly produced capital goods equal?
A) $715 billion B) $785 billion C) $750 billion D) $35 billion E) There is not enough information to answer this question.