Assuming that progressive taxation is desirable, a consumption tax calculated by subtracting saving from income would be preferable to a general sales-based consumption tax
a. True b. False
a
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With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the dollar is
A) 3 percent. B) 10 percent. C) 13.5 percent. D) 17 percent.
Suppose you own your own pizzeria. All of the following are implicit costs except
A. the income you could have made using your delivery truck to do something else. B. the gasoline used when you deliver pizzas. C. the wages you could earn making pizza for your competitors. D. the interest forgone on the money you invested in your restaurant.
Refer to Figure 11-16. The figure above illustrates a series of isoquants. Which of the following statements is true?
A) Points z and y represent the same output; this output is produced with more capital at z than at y. B) Point z represents a greater output than point x or point y. C) Points x, z, and y all represent the same output. D) Point x and y represent the same output but the cost of production at y is greater than the cost of production at x.
If a firm is currently in short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision?
A) The firm will decrease output to earn a higher profit. B) The firm will increase output but earn a lower profit. C) The firm will not change output but earn a lower profit. D) The firm will not change output and earn a higher profit.