Redistribution of income from the rich to the poor is achieved from a tax system that requires taxes to rise with income. Which of the following criteria best explains the goal of this tax system?
A. stability
B. efficiency
C. growth
D. equity
Answer: D
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost paid by the producers and everyone else in society when 200 billion kilowatt hours are produced is
A) 0¢ per kilowatt. B) 10¢ per kilowatt. C) 20¢ per kilowatt. D) 15¢ per kilowatt. E) 5¢ per kilowatt.
If the money supply is $600 and nominal income is $3,600, the velocity of money is
A) 1/60. B) 1/6. C) 6. D) 60.
The higher the interest rates
a. the more value individuals place on future dollars b. the more value individuals place on current dollars c. less investments will take place d. does not affect the investment strategy
Governments often subsidize activities that generate positive externalities in order to get people to engage in more of them
a. True b. False