In which of the following tax systems do taxes increase as income increases?
a. both proportional and progressive
b. proportional but not progressive
c. progressive but not proportional
d. neither proportional nor progressive
a
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A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis. B) per unit of pollutant is constant. C) per unit of pollutant is lower for low polluting firms. D) per unit of pollutant is proportioned to profits or ability to pay.
Network externalities refer to the situation where the usefulness of a product increases with the number of consumers who use it
Indicate whether the statement is true or false
Price level changes have their greatest effect on consumers'
a. income. b. wealth. c. debt. d. expectations.
A bond is
A. A certificate acknowledging a debt and the amount of interest to be paid each year until repayment; an IOU. B. An insurance policy investor's purchase to protect against the possibility of falling stock prices. C. A coupon used to collect a dividend. D. A share in a corporation.