A flat tax which does allow deductions for investment spending is a type of
A) investment tax. B) excise tax. C) luxury tax. D) consumption tax.
D
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During recent elections, consumer groups in various states attempted to get the sales tax on all medicines and drugs removed. They argued that such a tax is "severely regressive." What is the economic interpretation of their statement?
a. The poor get ill more often than do the rich. b. The poor pay higher prices for medicine and drugs than do the rich. c. The poor pay a higher percentage of their income for medicine and drugs than do the rich. d. All consumers pay too much money for medicine and drugs. e. The sales tax discourages the poor from seeking medical treatment.
A market demand curve is
a. the sum of the demand curves of individuals in a market b. the sum of individuals who make demands c. horizontal at the market price d. vertical at the market price e. upward sloping
Assume that Ms. Sawyer's salary is $42,000, up from $40,000 last year, while the CPI is 157.5 this year, up from 150 last year. This means that Ms. Sawyer's real income has
A) increased. B) decreased. C) stayed the same. D) It depends on which year is the base year.
Which of the following refers to the capture hypothesis of regulation?
A. the control of regulatory agencies by firms in an industry B. the ability of the government to capture monopoly profits C. consumer cost savings captured through regulation D. horizontal mergers