What are the three principles of equity applied to taxation in the text?
What will be an ideal response?
1. The principle of horizontal equity holds that equally situated individuals should be taxed equally.2. The principle of vertical equity holds that unequals should be treated unequally.3. The benefits principle holds that those who reap the benefits from government services should pay the taxes to obtain the benefits.
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In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?
What will be an ideal response?
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is Alice's marginal revenue function?
A. MR = 100 - 0.005QK - 0.01QA B. MR = 100 - 0.005QA - 0.005QK C. MR = 100 - 0.005QA - 0.01QK D. MR = 100 - 0.005QK - 0.005QA
Since the early 1990s, the Fed has conducted monetary policy by setting a target for the
A) level of borrowed reserves. B) monetary base. C) federal funds rate. D) inflation rate.
Real business cycle theory emphasizes the effect of ________ on economic performance
A) government spending B) the money supply C) aggregate supply shocks D) tax rates