Suppose the government wants to finance housing for low-income families by placing a tax on the purchase of luxury homes. Assume the government defines a luxury home as a home that is purchased for at least $1 million
This tax is consistent with the
A) social equity principle. B) benefits-received principle.
C) ability-to-pay principle. D) horizontal-equity principle.
C
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In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?
A) 100 percent B) 90 percent C) 65 percent D) 5 percent
According to supply-siders, an switch from taxing income to taxing consumption to will
a. lead to a permanent increase in output-per-worker. b. lead to a temporary increase in output-per-worker. c. lead to a decline in output-per-worker. d. not change output-per-worker.
Adverse selection is a situation in which one party, as a result of a contract, has an incentive to alter their behavior in a way that harms the other party to the contract
a. True b. False
Personal income is:
a. total income received by households before taxes. b. the amount households have available for consumption, savings, and payment of personal taxes. c. national income minus corporate profits and Social Security (FICA) plus transfer payments, and other income. d. all of these.