Why might a VAT be more popular politically than a retail sales tax?
a. Its transparency appeals to voters.
b. Its lack of transparency makes it easier to misunderstand its effects.
c. It is more efficient per dollar raised.
d. It is more consistent with the benefit principle of taxation.
b
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What is measured on the vertical axis of the aggregate demand graph?
A) unemployment B) nominal income C) the price level D) real GDP per year
If people correctly anticipate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP: a. in both the short run and the long run. b. in the short run but not the long run
c. in the long run but not the short run. d. in neither the short run nor the long run.
Human capital is
a. a stock of equipment and structures. b. the result of investments workers make in themselves such as education. c. a difference in wages that arises to offset the nonmonetary characteristics of different jobs. d. a characteristic that affects a worker's self-esteem but not her wages.
By subsidizing the provision of public education, the government
A. pushes the per-unit price that producers of educational services receive above the market clearing price. B. pushes the per-unit price that consumers pay for educational services below the market clearing price. C. generates an increase in the quantity of educational services demanded. D. All of these.