If a state government wants to collect the maximum tax revenue from a unit excise tax, which of the following would they tax?
A) cigarettes
B) beef hamburgers
C) luxury cars
D) concert t-shirts
A
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Which of the following is the best example of a differentiated product?
A) beets in the local supermarket B) diamonds C) airlines D) running shoes E) electricity
In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies ________
A) are $1 million B) are $0.5 million C) cannot be calculated D) are -$0.5 million
When is it more expensive for a country to go to war – during a recession or during an economic boom? Explain
What will be an ideal response?
Why might the tax multiplier be smaller than the expenditure multiplier? Under what circumstances might the reverse be true?
What will be an ideal response?