About 35,000 general aviation multiengine airplanes are licensed to operate in the United States. If an additional $1,000-per-year tax was levied on each plane to raise general revenue, economic thinking suggests the
a. annual revenue from this tax would be less than $35,000,000.
b. annual revenue from this tax would be $35,000,000.
c. annual revenue from this tax would be more than $35,000,000.
d. number of airplanes would increase dramatically.
A
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One dollar could be exchanged for 55 rupees in 2013 and for 60 rupees in 2014. This implies that the:
A) real exchange rate did not change in 2014. B) dollar appreciated in 2014. C) nominal exchange rate did not change in 2014. D) rupee appreciated in 2014.
Suppose the market clearing price for apples falls from $3.00 to $2.00 per pound, and the overall market clearing output increases from 1 million to 2 million pounds. How can we explain the fall in price and increase in market output?
A) Supply decreased and demand remained unchanged. B) Supply remained unchanged and demand decreased. C) Demand increased and supply remained unchanged. D) Demand remained unchanged and supply increased.
Discounting involves dividing next-period income by ________
A) one plus the real rate of interest B) the nominal rate of interest C) current income D) the real rate of interest
What is inflation targeting?
a. Making sure inflation is reduced to zero. b. Increasing the required reserve ratio when there is inflation. c. Increasing the supply of money in the economy. d. Aiming for a particular inflation level.