Policymakers use taxes
a. to raise revenue for public purposes but not to influence market outcomes.
b. both to raise revenue for public purposes and to influence market outcomes.
c. when they realize that price controls alone are insufficient to correct market inequities.
d. only in those markets in which the burden of the tax falls clearly on the sellers.
b
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Define X = exports, M = imports, S = saving, I = investment, T = net taxes, G = government expenditure. Which of the following formulas is correct?
A) X - M = S - I - T - G B) X - M = S - I + T - G C) X - M = S + I + T - G D) X - M = S + I -T + G E) X - M = S + I +T + G
A proponent of supply-side economics would advocate
A. increasing income taxes on saving. B. reducing corporate income tax. C. increasing capital gains tax. D. increasing personal income tax.
In the short run, monopolistically competitive firms behave like ________________, but in the long run, the profit of a firm is similar to that of ________________.
A. monopolies; perfectly competitive firms B. perfectly competitive firms; monopolies C. monopolies; oligopolies D. oligopolies; perfectly competitive firms
Governments require immunizations of school children and offer immunization shots for free to low income people. An external benefit associated with immunization is:
A. the immunized staying well. B. one person being immunized does not prevent another from being immunized. C. a lower chance of epidemics. D. All of these