What is meant by "tax shifting"?
What will be an ideal response?
Tax shifting occurs when households can alter their behavior and do something to avoid paying a tax..
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A decline in real mortgage rates will lead, other things the same, to ________
A) lower demand for housing B) tighter financing constraints C) an increase in residential investment D) a lower relative price of housing
Which of the following illustrates a barter transaction?
A) A bushel of oranges is traded for a bushel of apples. B) Someone buys a pizza for the special price of $4. C) Someone buys a house for $100,000. D) b and c E) a, b, and c
Assume there is no way to prevent someone from using an interstate highway, regardless of whether or not he or she helps pay for it. This characteristic is called:
A. Nonrivalry B. Nonexcludability C. Nontaxability D. Nondiscrimination
To pursue higher rates of economic growth only when the advantages of the policy outweigh the sacrifices that must be made is an example of the:
A. principle of comparative advantage B. principle of increasing opportunity costs C. scarcity principle D. cost-benefit principle