In general, state and local taxes are
A. Progressive.
B. Regressive.
C. Flat.
D. Proportional.
Answer: B
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Assume that the supply curve is horizontal because marginal cost is constant at $10. John, Robert, and Jimmy each value one compact disc at $20 but only Jimmy and John value a second compact disc (Jimmy at $5 and John at $15). If a social planner dictates that two compact discs be produced and distributed to John, Robert, and Jimmy, then even if the compact discs are allocated based on demand, this market will lose out on $___ of value.
a. $5. b. $10. c. $15. d. There will be no lost value as five compact discs is the efficient level.
Below the equilibrium level of nominal interest rates, there is a _______ of money and money interest rates will tend to _____ as a result. a. Shortage; fall. b. Shortage; rise. c. Surplus, fall
d. Surplus; rise.
A disadvantage associated with grouping jobs on the basis of functional specialty is that
A. managers tend to ignore the interdependencies among units that might lower a firm's value. B. managers rely on implicit understanding and informal relationships. C. employees have to seek ratification from managers for initiation and implementation of decisions. D. employees concentrate more on achieving departmental goals rather than customer satisfaction.
If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift
A. downward by $25 billion. B. downward by $10 billion. C. upward by $25 billion. D. upward by $10 billion.