You are a government tax policy advisor. You are asked how to convert the U.S. income tax into a consumption tax. Which of the following is the best response?
a. It already is a consumption tax.
b. Flatten the brackets into one rate.
c. Exclude the first $25,000 of income.
d. Allow unlimited contributions into IRAs
d
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A concert in a crowded auditorium is ________ in consumption
A) non-excludable and non-rival B) excludable but non-rival C) excludable and rival D) non-excludable but rival
In the New England colonies,
(a) long winters, short summers, heavily forested areas, and rocky terrain contributed to a lack of productive farmland; agriculture was a difficult, marginal activity. (b) the great majority of New Englanders engaged in some type of subsistence agricultural activity. (c) most New England farmers subsidized their farm income with some other type of income from another occupation to support themselves, save and invest. (d) all of the above are true.
When a recessionary gap occurs
a. real output exceeds the natural level of output, and unemployment exceeds its natural rate b. real output exceeds the natural level, and unemployment is less than its natural rate c. real output is less than the natural level of output, and unemployment exceeds it natural rate d. real output is less than the natural level of output, and unemployment is less than its natural rate
Refer to Table 8.2. Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price for earrings is $60. To maximize profits Sherry should produce __________ pairs of earrings. A) two B) three C) four D) five