Why is the current U.S. tax-treatment of health insurance purchased through one's employer discriminatory?
a. Health insurance should not be a tax-deductible expense for anyone.
b. The system gives preferential tax treatment to self-employed individuals.
c. The system imposes higher taxes on the direct purchase of health insurance because it is not tax deductible.
d. The system gives preferential tax treatment to people who purchase health insurance directly from a provider.
C
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The ability to control a scarce resource or input is a characteristic of perfect competition.
Answer the following statement true (T) or false (F)
According to the Bureau of Labor Statistics, in the Federal Government, the starting salary for economists having a bachelor's degree was $35,752 in 2007. Assume that our economist will get this government job that offers a 3 percent raise annually. After 5 years of working, she quits and never works again. How much will this worker have earned over her brief working career? How much will she have paid in Social Security and Medicare taxes if the tax rate is 7.45 percent?
What will be an ideal response?
A dominant strategy is one that
a. makes every player better off b. makes at least one player better off without hurting the competitiveness of any other player c. increases the total payoff for one player d. is best for a player, regardless of what strategy other players follow e. leads to quicker convergence to market equilibrium
The effect of a tariff
A) is negligible since it applies to firms outside the nation. B) can lead to economies of scale for firms inside the nation. C) can lead to a monopoly when domestic firms become the sole suppliers inside the nation. D) will be more beneficial to large firms than to small firms.