If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
a. basing its taxation on ability to pay
b. levying a proportional tax
c. able to afford fewer treatment facilities when liquor sales decrease
d. discouraging alcoholics from seeking treatment at government facilities
e. providing a service that the private sector cannot provide
C
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An argument in favor of foreign direct investment is that it tends to
(a) reduce inequality. (b) promote rural development. (c) increase access to modern technology. (d) decrease local ownership. (e) none of the above.
Which of the following is a derivative financial asset?
A) A mortgage B) Commercial paper C) A Treasury bill D) A financial futures contract
Because people consider government bonds to be part of their wealth, they
a. tend to overconsume and undersave b. tend to oversave and underconsume c. realize that taxes balance out the interest they earn from these bonds, and therefore do not change their levels of consumption and saving d. tend to try to buy more bonds because they are safe, interest-bearing assets, and therefore save more and consume less e. tend to assume that the taxes are also assessed on their interest income, and therefore oversave and underconsume
The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least
a. 14 years old. b. 16 years old. c. 18 years old. d. 21 years old.