The Ability-to-pay Principle
What will be an ideal response?
the proposition that people should pay taxes according to how easily they can bear the burden of the tax
- High tax rates on high incomes
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Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise. In the market for beef, this would be represented by the equilibrium price ________ and the equilibrium quantity ________
A) increasing; increasing or decreasing B) increasing or decreasing; increasing C) decreasing; increasing or decreasing D) increasing or decreasing; decreasing
Suppose a ten firm industry has total sales of $35 million per year. The largest firm have sales of $10 million, the third largest firm has sales of $4 million, and the fourth largest firm has sales of $2 million
If fifth through tenth largest firms combined have annual sales of $12 million, the four-firm concentration ratio for this industry is A) 45.7 percent. B) 80 percent. C) 65.7 percent. D) none of the above.
When a firm doubles its inputs, its output:
A. will double. B. will less than double. C. will more than double. D. All of these are possible.
Banks are required to hold reserves against the total value of all their assets
a. True b. False Indicate whether the statement is true or false