Many states have no state-level personal income tax. How do you think that effects expenditure decisions?
What will be an ideal response?
States that do not have income taxes rely on other sources of revenue such as excise taxes. If
one believes that these taxes are regressive, then this sort of tax is falling hardest on lower
income residents. However, states can choose to exempt items like food and shelter, which
account for a greater percentage of spending among the poor.
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A highly liquid asset
A) generally has a very limited market for its resale. B) has high transaction costs associated with its sale. C) must be held for a substantial period of time. D) can be disposed of easily without loss of value.
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. Consider whether the product on the market is inexpensive because its quality is lower than you use d. If it is similar enough, it is justification for you producing it in-house
The benefit of a price floor to ________ is ________.
A. producers; the floor creates excess demand B. producers; the selling price of the product is above the equilibrium price C. consumers; the selling price of the product is below the equilibrium price D. consumers; the floor creates excess supply
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward