Which of the following taxes is based on the ability-to-pay principle?
a. Road taxes paid by the buyers of gasoline
b. Progressive income taxes that pay for scientific research
c. Payroll taxes that pay for Social Medicare
d. Education taxes paid by parents
b
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If the price of Coca-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the value of the price elasticity of demand for Coca-Cola is:
A. unit elastic. B. elastic. C. inelastic. D. perfectly inelastic. E. perfectly elastic.
A monetarist economist believes that
A) if the economy was left alone, it would rarely operate at full employment. B) the economy is self-regulating and always at full employment. C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic. D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.
If a currency depreciates, a country's net exports
a. fall and AD increases. b. rise and AD increases. c. fall and AD decreases. d. rise and AD decreases.
Economists argue that the union wage advantage
A) has been estimated to be 100% in the private sector. B) in the private sector is a 4% increase in wages for union workers over nonunion workers. C) reached its height in 2000 in the private sector. D) has been close to zero since World War II in the private sector.