In the markets for goods and services in the circular flow diagram, households act as
buyers.
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________ is generated from taxing profits earned by firms
A) Excise tax B) Sales tax C) Corporate income tax D) Payroll tax
When we cannot produce more of any good without giving up some other good that we value more highly, we have achieved
A) production. B) equity. C) allocative efficiency. D) the production point where the marginal benefit exceeds the marginal cost by as much as possible.
Allocative efficiency best explains ________, and productive efficiency best explains ________
A) how something will be produced; when something will be produced B) when something will be produced; why something will be produced C) why something will be produced; what will be produced D) what will be produced; how something will be produced
Exemptions are better off for the taxpayer than deductions _____
a. only in the case of housing-related tax preferences b. when itemizing deductions c. when taking the standard deduction d. for high-income taxpayers