A flat tax
A. Includes many tax brackets.
B. Encourages economic activity through deductions and credits.
C. Completely eliminates potential vertical inequities.
D. Reduces the government's ability to alter the mix of output.
Answer: D
You might also like to view...
In the neoclassical growth theory
A) small differences in the saving rate or population growth cause large variations in per capita income. B) large differences in the saving rate or population growth rate cause small variations in per capita income. C) large differences in the saving rate or small differences in population growth cause large variations in per capita income. D) small differences in the saving rate or large differences in population growth cause large variations in per capita income.
When the economy is on operating beyond the natural rate of real output, efforts to bring inflation down with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; less b. More; more c. Less; less d. Less; more
In the Shleifer-Vishny model, producers want:
a. the highest possible prices from regulators b. no regulation c. low regulated prices d. planned socialism e. none of the above
Inflation can be measured by the
a. change in the consumer price index. Inflation in the U.S. has averaged about 2.5% over the last 80 years. b. change in the consumer price index. Inflation in the U.S. has averaged about 4% over the last 80 years. c. percentage change in the consumer price index. Inflation in the U.S. has averaged about 3.6% over the last 80 years. d. percentage change in the consumer price index. Inflation in the U.S. has averaged about 4% over the last 80 years.