Which of the following is a tax based on the benefits-received principle?
A. A property tax, if the revenue is used to finance public education.
B. A tax added to the camping fee at national parks that is used to maintain and upgrade camping facilities at national parks.
C. A tax on imports that is used to finance job retraining for workers who have lost their jobs because of the competition from imported products.
D. A progressive income tax that is used to finance national defense.
Answer: B
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Andrew recently completed a degree in mechanical engineering. He has applied at several firms. How would you classify Andrew?
a. Cyclically unemployed b. Frictionally unemployed c. Not part of the labor force d. Structurally unemployed e. Both a and c
Approximately what percentage of the world's extinct species became extinct before humans appeared on earth?
A. 2 percent B. 10 percent C. 67 percent D. more than 99 percent
In oligopoly, firms
A. by virtue of their size, are able to influence price regardless of whether or not the product is differentiated or standardized. B. are able to influence price only if the oligopolist's products are differentiated. C. have no influence over price regardless of whether or not the product is differentiated or standardized. D. are able to influence price only if the oligopolist's products are standardized.
When the current Social Security surpluses end and the bonds in the trust funds are reduced in order to make payments to retirees, the financing for the redemption of the trust fund bonds will come from
a. higher taxes or more government borrowing. b. the surplus funds deposited in government banking accounts. c. equity capital being liquidated. d. the sale of private equities and securities that the government has been purchasing with the funds.