If the government proposed a one-time tax of 25% on accumulated wealth, this would likely
A) reduce the incentive for individuals to accumulate wealth.
B) increase the incentive for individuals to accumulate wealth.
C) have no impact on individual accumulation of wealth since it is a one-time tax.
D) All of the above are equally likely to happen.
A
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Comparative advantage can change over time
Indicate whether the statement is true or false
In the South after the Civil War,
a. agriculture was the first to recover to prewar levels. b. the transportation network took nearly 20 years to recover. c. manufacturing recovered before agriculture. d. large public spending was needed to repair extensive damage to the rail network.
Which of the following is a predictable side effect of increased government activity (for example, taxes and subsidies) designed to redistribute income among citizens?
a. improvement in the operational efficiency of government agencies b. budget surpluses c. reduction in the poverty rate d. an increase in rent-seeking activity
The economy of Cuba most closely approximates:
A. laissez-faire capitalism. B. a command economy. C. a market economy. D. pure capitalism.