A lump-sum tax
a. is most frequently used to tax real property.
b. does not distort incentives.
c. distorts incentives more than any other type of tax.
d. is the most fair tax.
b
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Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda
Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?
A decrease in the interest rate reduces the opportunity cost of holding money
a. True b. False
A legal limit on the quantity of a good that may be imported is called a(n) ________.
A. tariff B. import tax C. trade limit D. quota
Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:
A. longer life expectancies. B. higher rates of infant mortality. C. higher material standards of living. D. higher rates of literacy.