An In the News article titled "State Lotteries: a Tax on the Uneducated and the Poor" reports that poor people spend a larger percentage of their income on government-promoted gambling than do rich people. On the basis of this information, we can conclude that lotteries function as
A. A property tax.
B. A progressive tax.
C. An income tax.
D. A regressive tax.
Answer: D
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The elimination of barriers to the international flow of labor tends to:
A. Lower the wage rates for all labor B. Raise the wage rates for all labor C. Increase worldwide production efficiency D. Decrease worldwide production efficiency
If there are important spillover benefits from consumption of a good, a. government should prohibit its production
b. taxes should be imposed on producers of the product. c. the market demand curve for the good understates the value of the product to society and resources are therefore underallocated to its production. d. the market demand curve for the good overstates the value of the product to society and resources are therefore overallocated to its production.
A clear conclusion from offshoring debates and analyses is that:
a. If offshoring isn't stopped, some nations are likely to go bankrupt. b. Tariffs and quotas are needed to protect nations from offshoring's ill effects. c. Offshoring is often disruptive in the short run and can have significant transition costs. d. Offshoring lacks any potential to increase a nation's GDP and holds only the potential to keep GDP the same or reduce it.
What will a price ceiling that is non-binding do?
a) It will cause a surplus in the market. b) It will cause a shortage in the market. c) It will cause the market to be less efficient. d) It will have no effect on the market price.