Explain the differences between a corporate bond, a municipal bond, and a Treasury bond. Which of these would be the least risky investment, and why?
Corporate bonds are issued by corporations, while municipal bonds and Treasury bonds are both issued by the government. Municipal bonds are issued by state and local governments, and Treasury bond is issued by the federal government. The Treasury bond would be the least risky investment since the U.S. federal government is unlikely to default on its bond obligations. The federal government has the power to tax to pay off bondholders, if necessary.
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Indicate whether the statement is true or false
Which of the following is true of individual income taxes?
A) Individual income taxes are only collected by the federal government. B) Individual income taxes are only collected by the state governments. C) All states in the U.S. collect individual income taxes. D) The rate of income tax imposed by states in the U.S. varies.
The dollar value of the maximum amount one can consume over a given period without reducing the value of one's wealth is the _____
a. definition of income used to approximate in-kind benefits b. Fisher definition of income c. Laffer definition of income d. Haig-Simons definition of income
A repeated cross-sectional data set is
A) a collection of cross-sectional data sets, where each cross-sectional data set corresponds to a different time period. B) the same as a balanced panel data set. C) what Card and Krueger used in their study of the effect of minimum wages on teenage employment. D) time series.