One advantage of using an inflation tax over other methods of tax collection is that:
A) inflation tax only affects individuals with a high income.
B) people who evade other taxes also feel the burden of an inflation tax.
C) the revenue from inflation tax is extremely high.
D) the collection of inflation tax is more organized.
B
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Assume the marginal propensity to consume is .8 . To offset a fall in income of 1,000, the government should
a. increase taxes by $200. b. raise taxes by $250. c. increase government spending and taxes by 1,000. d. cut taxes by $200. e. both c and d.
Most economists feel that overly strict financial regulation from 2000 to 2006 contributed to the financial crisis of 2007-2009
a. True b. False Indicate whether the statement is true or false
iTunes charges British customers 20 percent more than customers in France and Germany. Apple defended the price difference, saying that the "underlying economic model in each country has an impact on how we price our track downloads." An economist would say that Apple is engaged in:
A. monopolistic competition. B. price discrimination. C. collusion. D. reverse engineering.
Technological innovation in the production of computers has led to
A) a decrease in the quantity demanded for computers. B) a rightward shift of the supply curve for computers. C) a decrease in the quantity supplied of computers. D) None of the above.