Flat tax critics
A. Point out that it would increase home values significantly.
B. Believe it would create additional vertical and horizontal inequities.
C. Believe it would make it easier for state and local governments to raise their own revenues.
D. Point out that it would increase the government's ability to alter the mix of output.
Answer: B
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Limits to collusion include
a. price discrimination b. economies of scale c. horizontal market demand curves d. high prices e. incentives to cheat on the collusive agreement
Suppose that along the economy-wide rate-of-return line, the current interest rate of 8 percent causes a planned investment of $300 billion
Should the interest rate fall to 7 percent, the $300 billionth dollar of investment spending now generates a ________ rate of profit, which puts ________ pressure on investment. A) positive, downward B) positive, upward C) negative, downward D) negative, upward
What is the present value of $750 received three 3 years from now if the current rate of interest is 7%?
A) $612.22 B) $700.93 C) $918.78 D) $2,407.50
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What is the sum of his explicit costs?
A. $26,000. B. $66,000. C. $78,000. D. $52,000.