One characteristic of an efficient tax system is that it minimizes the costs associated with revenue collection
a. True
b. False
Indicate whether the statement is true or false
True
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The quantity demanded of baseball bats increased from 1,000 units to 1,100 units when its price fell from $20 per bat to $18 per bat. The price elasticity of demand for baseball bats is:
a. 1.43. b. 0.99. c. 1.73. d. 2.44.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The real risk-free interest rate rises, and reserve-related (central bank) transactions become more negative (or less positive). c. The real risk-free interest rate and reserve-related (central bank) transactions remain the same. d. The real risk-free interest rate rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
A firm that retains earnings does the equivalent of
A. borrowing money from the firm's shareholders. B. lending money to the firm's shareholders. C. decreasing the net worth of the firm's shareholders. D. decreasing its own net worth.
With perfect price discrimination, the marginal revenue curve
A) is above the demand curve. B) is equal to the demand curve. C) is horizontal. D) is below the demand curve.