There are some well-respected economists that believe we should substitute a national sales tax for the income tax. Other equally well-respected economists do not agree. What accounts for the difference in opinion?
a. It might be over their interpretation of fairness.
b. It might be over different modeling
c. Both (a) and (b).
d. None of the above.
c
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Suppose two economic models give the same predictions --- but one is simplistic and unrealistic in its assumptions while the other is rich in detail and resembles the real world more closely. If the sole goal of the economist is to predict, then the economist should use the simple and unrealistic model.
Answer the following statement true (T) or false (F)
Government-created price floors are typically imposed to
a. help consumers b. help producers c. raise tax revenue d. shift the supply curve to the left e. shift the demand curve to the right
Who of the following would be counted as unemployed in Canada?
A) Sharon is a college student with no job. B) Doris only works five hours a week but is looking for a full-time job. C) Maurice has been laid off from his job for 20 weeks but expects to be called back soon. D) Bogdan has been laid off from his job but does not expect to be called back, and is not looking. E) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two -month search.
Greg spends his entire budget on two goods: he plays video games at the mall arcade and he buys pizza. He discovers that his MU/P of video games is lower than his MU/P of pizza. From this, we know that he would be:
A. as happy as possible, since he is already maximizing total utility. B. happier eating less pizza and playing more video games. C. happier eating more pizza and playing fewer video games. D. indifferent to which selection he makes.