Which of the following statements is correct?
a. Vertical equity is the idea that taxpayers with similar abilities to pay taxes should pay the same amount.
b. Horizontal equity is the idea that taxes should be levied on a person according to how well that person can shoulder the burden.
c. A regressive tax would mean that high-income tax payers pay a larger fraction of their income in taxes than would low-income taxpayers.
d. A proportional tax would mean that high-income and low-income taxpayers pay the same fraction of income in taxes.
d
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What is the largest source of tax revenue for the U.S. federal government and what is the largest expenditure item of the U.S. federal government?
What will be an ideal response?
Refer to the figure above. If Lithasia opens up to free trade, then which of the following statements is true?
A) The domestic production of pens in Lithasia will increase. B) The domestic price of pens will increase. C) Lithasia will start exporting pens. D) Lithasia will start importing pens.
If purchasing power parity tells us that if the exchange rate is a pound for a dollar, then price of a haircut in London should cost the same as a haircut in New York
Indicate whether the statement is true or false
A main trading partner with the U.S. is:
A. South Africa. B. Mexico. C. Russia. D. Saudi Arabia.