Answer the following statements true (T) or false (F)
1. A good tax must possess the characteristic of equality.
2. If the cost of collecting a tax is low relative to the revenue generated, the tax is said to be economical.
3. Interest on the national debt is an insignificant part of the U.S. federal budget.
4. In the United States, income is taxed only by the federal government.
5. The equality-of-sacrifice doctrine would require larger taxes from higher-income groups.
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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A large U.S. steel firm wants to restrict imports of Japanese steel, but Ford Motor Company wants fewer restrictions on steel so that the price of steel will go down. This can best be described as
a. a zero-sum game b. a competing-interest situation c. a special-interest situation d. a situation without widespread costs and benefits e. an argument over distribution of a public good
Money eliminates the need to barter
a. True b. False Indicate whether the statement is true or false
Which best describes the backing for money in the United States?
A. The gold stored in the Federal Reserve Bank of New York. B. The acceptability of it as a medium of exchange. C. The size of the budget surplus in the U.S. government. D. The willingness of foreign government to hold U.S. dollars.
A situation where a consumer's willingness to use an item depends on how many others use it is
A. a vertical merger. B. a positive-sum game. C. a network effect. D. price-leadership.