What has been the main argument over recent efforts to replace the personal income tax with a value-added tax?
What will be an ideal response?
Opposition to the VAT focuses on its inherent regressivity. It can be argued that the U.S. individual income tax already exempts much of saving because employer contributions to pension plans and increases in accumulated equity in private homes are not taxed. Opponents also argue that a huge new revenue source like the VAT might tempt the government to raise taxes.
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If the aggregate supply curve is vertical, then shifts in aggregate demand will not change aggregate output
a. True b. False Indicate whether the statement is true or false
One In the News article titled "CDs Not Paying Much" suggests that
A. Interest rates on CDs are not much higher than for checking accounts. B. Interest rates fall the larger the CD. C. The size of the CD has no bearing on the interest rates. D. None of the choices are correct.
A candle manufacturer produces 4,000 units when the market price is $11 per unit and produces 6,000 units when the market price is $13 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 6. b. 2.4. c. 0.4. d. 0.67.
Which statement is the most accurate?
A. Most welfare mothers have had child after child to get larger welfare payments. B. Most welfare families have three or more children. C. There are many theories of poverty, but none provides more than a partial explanation. D. The conservatives and liberals are in basic agreement about the causes of poverty.