Irving Fisher argued for a tax on consumption instead of on income because
A. the standard of living depends not on income, but on how much is consumed.
B. consumption is the best indication of ability to pay.
C. a tax on consumption raises more revenue than a tax on income.
D. a tax on income discourages saving by taxing savings twice.
Answer: D
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In 1994, the Bureau of Labor Statistics started to report
A) the unemployment rate weekly to provide a better picture of the labor market. B) alternative measures of the unemployment rate that include narrower measures of the labor market. C) alternative measures of the unemployment rate that include broader measures of the labor market. D) the unemployment rate by surveying 200,000 households. E) B and C are correct answers.
A trade balance where exports exceed imports is called:
A) trade surplus. B) trade deficit. C) budget deficit. D) none of the above.
A player that starts at the end of the game and progresses to the first move to determine best responses
A) doesn't understand how to play a game. B) is acting irrationally. C) is using backward induction. D) is using the Stackelberg Strategy.
Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the long run
A) real GDP will be Y1, and the price level will be P1. B) real GDP will be Y2, and the price level will be P2. C) real GDP will be between Y1 and Y2, and the price level will be above P1. D) real GDP will be between Y1 and Y2, and the price level will be below P2.