The lump sum principle suggests that the tax that reduces utility the least is
a. a tax on income
b. a tax on a good with many substitutes
c. an equal tax per-unit on all goods
d. a tax on a good with only a few substitutes
a
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Specialty chocolate bars with a high cocoa content have been drawing a lot of attention in gourmet circles in 2008 but the price of cocoa beans has increased more than 44 percent in this time period
In response to the increase in the price of cocoa beans, Rogue Chocolatier has increased the price of their gourmet chocolate bars by 20 percent. Rogue observes the quantity of their bars sold decreased by 15 percent. Based on this news clip, what does the price elasticity of demand for gourmet chocolate bars equal? A) 0.75 B) 1.25 C) 1 D) 0.66
A "easy" money, tight "fiscal" policy combination will be preferred by society which values
A) low growth rates, but more goods and services in the future. B) public goods today greater than private goods in the future. C) private goods today more than public goods in the future. D) public and private goods in the future more than public and private goods today.
An increase in aggregate demand will result in inflation
a. True b. False Indicate whether the statement is true or false
A supply-side economist would recommend a cut in marginal tax rates on capital gains and on investment expenditures
A. When the economy is in a recession. B. if government spending is cut by an equal amount. C. if it is judged that the resulting deficit will not crowd out very much investment. D. regardless of the state of the economy or other policies.