Excess quantity demanded for a good creates pressure to push the price of that good down toward the equilibrium price
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose an identical tax is levied on capital, labor, and land. Would the tax have the same effect in each of these markets? Explain your answer
What will be an ideal response?
Which of the following is NOT a government-sponsored enterprise?
A) Fannie Mae. B) Freddie Mac. C) Federal Home Loan Banks. D) Ginnie Mae.
Given the current structure of the Social Security and Medicare programs, the retirement of the baby boom generation during the years following 2012 will be most likely to
a. reduce government expenditures on health care and income transfers. b. increase government expenditures on health care and income transfers. c. result in large budget surpluses. d. result in lower tax rates.
Advocates of a progressive income tax use arguments EXCEPT for which of the following?
A) A progressive tax system taxes according to ability to pay. B) A progressive tax system taxes according to benefits received. C) A progressive tax system helps redistribute income away from the rich and towards the poor. D) A progressive tax system maximizes government revenues.