Which of the following statements does not apply to the U.S. tax structure?
A. The individual income tax system is progressive.
B. General sales taxes are regressive.
C. Property taxes are an important source of revenue for the federal government.
D. The major sources of revenue for the federal government differ from the major sources of revenue for state and local governments.
C. Property taxes are an important source of revenue for the federal government.
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Which of the following increases in labor demand is due to a change in the price of a related resource?
A. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers. B. Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards. C. A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers. D. Software sales rise, thus increasing the demand for software developers.
Which of the following is not a reason for solving the model with a PPF?
A) It merges the household and firm problems into one graph. B) It is simpler to solve the social planner problem. C) It highlights the fact that the marginal rate of substitution should equal the marginal rate of transformation. D) It highlights the fact that firms make no profit in equilibrium.
A special-interest issue is one that
a. allocates the cost of the activity in accordance with the benefits received. b. benefits a small, well-organized interest group at the expense of taxpayers or consumers. c. benefits everyone and imposes a cost on everyone. d. benefits a small, well-organized interest group but makes that group pay for the cost of the program.
If the area between the diagonal line of absolute equality and the Lorenz curve is greater for the United States than for Japan, we can conclude that the
A. Distribution of income in Japan is as equal as in the United States. B. Relative distributions of income in the two countries are the same. C. Distribution of income in Japan is closer to being equal than in the United States. D. Distribution of income in Japan is less equal than in the United States.