Which of the following are U.S. taxpayers allowed to adjust for inflation for the purpose of income taxes?
a. both interest income and capital gains.
b. interest income but not capital gains.
c. capital gains but not interest income.
d. neither interest income nor capital gains.
d
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Explain how a decrease in housing prices may reduce the wealth of some while increasing the wealth of others. What effect would this have on aggregate consumption?
What will be an ideal response?
Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on milk. The supply function for milk becomes:
A. Qsm = 4Pm - 6. B. Qsm = 6Pm - 6. C. Qsm = 6Pm - 20. D. Qsm = 6Pm - 10.
When governments provide information to unemployed people about which professions are experiencing rising demand for labor, they are trying to minimize the effects of which kind of unemployment?
A. Frictional unemployment B. Structural unemployment C. Seasonal unemployment D. Cyclical unemployment
According to the Laffer curve, tax evasion occurs in the same conditions that promote ______.
a. maximum tax revenues b. high incentives to work c. low incentives to invest d. maximum savings