Are property taxes progressive or regressive?
The nature of property taxes is controversial. Some economists think the property tax is progressive because it is a tax on wealth. Persons with high incomes tend to hold more property than persons with low income; therefore, the property tax may be viewed as progressive. An alternate view is that the property tax is an excise tax on rents. Because the poor pay a larger fraction of income in rent than do the wealthy, the property tax may be viewed as regressive.
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Suppose the economy is initially experiencing a recessionary ga
A) a reduction in the size of the recessionary gap and increase in real GDP. B) an increase in the size of the recessionary gap and decrease in real GDP. C) an inflationary ga
If the price of a good increases by one thousandth of 1% and the quantity demanded goes to zero, then at that price, the good is
A. perfectly inelastic. B. perfectly elastic. C. inelastic. D. non-responsive.
About two-thirds of the reduction in tariffs in the past 20 years comes from:
A. specific funding directed at encouraging trade through subsidies by the World Bank. B. the work of the WTO, World Trade Organization. C. reforms by national governments changing their own policies or making agreements with each other. D. None of these statements is true.
The idea that saving equals investment in the Solow model means that a steady state can be reached only when
A. sf(k) = (n + d)k. B. sf(k) = (s + d)k. C. s = n + d. D. s = k.