Lump-sum taxes reduce the total amount of revenue that can be raised because:
A. people perceive them to be unfair.
B. they have large administrative burdens.
C. the size of the tax is limited by the poorest citizens' ability to pay.
D. they are often applied inefficiently.
C. the size of the tax is limited by the poorest citizens' ability to pay.
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Checking deposits are
A) not part of money. B) part of money. C) small in volume relative to currency in circulation. D) quite different from checking accounts.
Refer to Figure 4-2. What area represents producer surplus at a price of P2?
A) A + B B) B + D C) A + B + C + D + E D) A + B + C
Which of the following is NOT a focus of the study of economics?
A) how individual preferences are formed B) unemployment C) inflation D) prices in particular markets
Which of the following would NOT provide an incentive to reduce the amount of beef consumed?
A) an increase in the price of beef B) a subsidy to buyers of beef C) a decrease in the price of chicken D) a ban on beef sales by the Food and Drug Administration