Answer the following statements true (T) or false (F)
1. A consumption tax exempts saving from taxation.
2. A national sales tax would be considered regressive in relation to income.
3. In the past few decades, the tax system of the United States has been used to redistribute income.
4. If the primary purpose of taxes was to raise sufficient revenue to cover the costs of government-provided services, a balanced budget would be an ongoing target.
5. Using the budget as an economic stabilizer requires maintaining a continuous deficit.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
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A financial asset is considered a security if
A) the owner of the security receives dividends and realizes a capital gain when the asset is sold. B) its value increases after it is sold in a primary market. C) it can be sold in a secondary market. D) its value is secure; that is, the owner will not suffer a financial loss when the asset is sold.
The downward sloping marginal revenue product of labor is
A) the firm's supply of labor. B) the firm's short-run demand for labor. C) the firm's marginal cost of labor. D) another term for the marginal revenue product of labor.
From the early 1860s to the early 1900s, the amount of land acquired by sales (including from railroads and states) was _____ land obtained free through homesteading
a. roughly half as much as b. about the same as c. twice as much as d. triple the amount of
One reason for the recent increases in health care costs is the aging of the American population.
A. True B. False C. Uncertain