Describe the two basic philosophies of taxation fairness
The two basic philosophies of taxation fairness are the benefits-received principle and the ability-to-pay principle. The benefits-received principle argues that those who received the benefits of government spending programs ought to be the ones who pay for those programs or public goods and services. The ability-to-pay principle argues that the rich ought to pay more taxes because they can afford to do so.
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Consumers in Beachland consume only two goods, sodas and DVDs. If they spend $10 on sodas and $90 on DVDs a month, how many sodas and DVDs are in their CPI market basket if the price of a soda is $1 and the price of a DVD is $9?
A) 9 sodas and 1 DVD B) 1 soda and 9 DVDs C) 10 sodas and 9 DVDs D) 10 sodas and 10 DVDs E) It is impossible to determine the market basket without information on the quantity of at least one of the two goods consumed.
Trading in a barter economy requires
a. money. b. a double coincidence of wants. c. equal sharing of assets. d. all people to be farmers.
"Exotic" mortgages became popular in part because home prices were expected to
A. rise quickly. B. become increasingly unpredictable. C. fall precipitously. D. remain virtually constant.
If the price of salmon increases relative to the price of cod, the demand for:
A) cod will decrease. B) cod will increase. C) salmon will decrease. D) salmon will increase.