The major economic effect of Medicare subsidies is
A. that the number of physicians has decreased since compensation is low.
B. to lower the price of medical services and reduce the quantity demanded.
C. to increase the price of medical services and increase the quantity demanded.
D. to increase the price of medical services and reduce the quantity demanded.
Answer: C
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Dynamic tax analysis is an economic evaluation of tax rate changes
A) by the National Tax Institute in Burlington, Massachusetts. B) by various state governments. C) by the tax institutes established by a consortium of business schools. D) based on the assumption that tax base declines if tax rates continuously increase.
In 2010, the highest quin tile of the income distribution earned approximately
a. 5 percent of aggregate income. b. 10 percent of aggregate income. c. 15 percent of aggregate income. d. 50 percent of aggregate income.
The annual membership fees of the 185 member countries of the IMF are called:
a. annuities. b. quotas. c. vetos. d. conditionalities. e. petrodollars.
An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when the:
A. supply of the product is relatively less elastic than demand. B. supply of the product is relatively more elastic than demand. C. tax is collected from the buyers. D. tax is collected from the sellers.