A tax system based on the ability-to-pay principle claims that all citizens should
a. pay taxes based on the benefits they receive from government services.
b. pay the same amount in taxes.
c. pay taxes based on consumption rather than income.
d. make an equal sacrifice.
d
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The concept of odious debt implies
(a) an excessive debt. (b) a debt that is not the responsibility of the nation's people. (c) a large debt burden. (d) the total external debt of a nation's people.
After a massive promotional campaign of Justin Bieber's latest music album, the producers decided to raise the prices on the album. This implies that the producers expect the promotion to have made the demand for the album
a. More elastic b. Unitary elastic c. Perfectly elastic d. More inelastic
Pigovian taxes are used to counterbalance:
A. negative externalities. B. positive externalities. C. network externalities. D. They could be used to counteract any of these.
The nominal exchange rate is 32 Russian rubles per dollar. The price of a bushel of wheat is 260 rubles in Russia and $7 in the U.S. A. What is the real exchange rate? Show your work. B. Can arbitragers make a profit? C. If your answer to B is yes, where would arbitragers buy and where would they sell