All of the following statements are true except
A. an income tax taxes savings twice only if consumption is the measure used to gauge a person's ability to pay.
B. at this time, there is not clear consensus on what the best tax base is.
C. proponents of income as a tax base argue that you should be taxed on what you draw out of the common pot instead of on the basis of your ability to draw from the pot.
D. the double taxation of saving tends to reduce the saving rate.
Answer: C
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Beth is participating in an open outcry Dutch auction. Bidding starts at $500, and her maximum williness to pay is $400. The total number of bidders participating in the auction is 4
Her optimal bid strategy is to buy when the price reaches ________. A) $320 B) $300 C) $375 D) $125
If the government thinks the price that a consumer has to pay for a good is too high, then which of the following would solve this problem?
a. a price ceiling or an excise tax b. a price floor or an excise tax c. a price ceiling or a subsidy d. a price floor or a subsidy e. none of the above will lower the price a consumer has to pay for a good
Recall the Economics in Practice on page 371: According to a study discussed in the Economics in Practice, when students were moved from a class taught by a below-average teacher to one at the 75th percentile, the move
A. increased the students' future earnings by more than 50% per year. B. increased the students' future earnings by 3.5% per year. C. actually decreased the students' future annual earnings. D. made no difference on the students' future annual earnings.
In the short run, if the stock of capital ________ there will be more depreciation
A) remains stable B) grows C) declines D) grows, declines, or remains stable