In 1994, the state of California suffered a devastating earthquake. To help pay for the damages, the state raised its sales tax by one cent per dollar of expenditure on most consumer goods
This state sales tax is an example of what economists call: A) an ad valorem tax.
B) a specific tax.
C) a neutral tax.
D) a negative tax.
E) none of the above
A
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In the goods market, firms ________ and households ________
A) supply goods and services; purchase goods and services B) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit C) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services D) purchase goods and services; supply goods and services E) hire land, labor, capital, and entrepreneurship services; supply goods and services
Imagine a simple economy with only two people, Leroy and Percy. If the Social Welfare Function is W = U L + U P , and the Utility Possibilities Frontier is UPF = U L + 2U P , what will be the societal optimum?
To derive the demand curve of a product in indifference curve analysis, the:
A. Budget line is assumed to stay in a fixed position B. Money income of the consumer is assumed to be variable C. The prices of both products are assumed to be variable D. Tastes and preferences of the consumer are assumed to be fixed
Which of the following countries had the worst score in the Corruption Perception Index in 2012?
A. Italy B. China C. Mexico D. Russia