This chapter has spent a lot of time dealing with issues of wealth and consumption. One suggestion has been to have a tax on wealth. What are some of the benefits of this proposal?
What will be an ideal response?
Wealth taxes help to correct certain problems that arise in the administration of an income tax,
and wealth taxation reduces the concentration of wealth, which is desirable socially and
politically.
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The equilibrium quantity in the above figure is
A) 200 units. B) 300 units. C) 400 units. D) 600 units.
________ policy involves decisions about government spending and taxation
A) Monetary B) Fiscal C) Financial D) Systemic
A rapid increase in the availability of credit to previously underserved borrowers is likely ________
A) to result from financial liberalization B) to improve the allocation of capital C) to confirm the merits of microcredit D) to result from deleveraging
A model is used to explain economic behavior. Therefore
A) the assumptions must be complex while the model itself is simple. B) the model must be complex. C) the model must be simple. D) the model can be either simple or complex so long as it explains economic behavior.