Make the argument that sales taxes could be considered as a regressive tax
What will be an ideal response?
The argument is that people with lower incomes are likely to spend most or all of their income. Therefore the sales taxes they must pay will represent a larger portion of their income than people that make more income and who are better able to save.
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An increase in wages raises the opportunity cost of leisure and leads to an increase in the quantity of labor supplied
Indicate whether the statement is true or false
A currency appreciation should
a. reduce net exports and therefore increase aggregate demand. b. raise net exports and therefore decrease aggregate demand. c. reduce net exports and therefore decrease aggregate demand. d. raise net exports and therefore increase aggregate demand.
_______________________ specifies the relation between technology and the factor inputs to output
A) Neoclassical growth theory B) Meta-ideas C) The LRAS curve D) A production function
Why does the AVC reach its minimum before the ATC reaches its minimum?
What will be an ideal response?