When Clean City banned the air pollution that still plagues Smogville, over time, we would expect that:
a. The residents of Clean City are happy with the decision
b. The residents of Smogville are happy that they did not enact a similar law
c. House prices in Clean City will have risen
d. All of the above
a
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The corporate income tax is ultimately paid by all of the following except
A) owners of the corporation. B) the corporation's debtors in the form of lower rates of return on the corporation's bonds. C) employees in the form of lower wages. D) customers in the form of higher prices.
Historically, consumption spending in the United States has _____
a. fluctuated greatly with changes in the level of income b. remained approximately constant as a percentage of income c. decreased as a percentage of income d. varied inversely with the inflation rate e. varied inversely with the interest rate
Taxing interest, dividends, and estates ______ the cost of saving versus consumption.
a. equalizes b. decreases c. increases d. eliminates
From a standpoint of resource allocation, a surplus of corn implies
a. the price of corn is too low and should be increased b. consumers would prefer some of the resources used to produce corn be used to produce something else. c. the market for agricultural products is failing. d. the quantity demanded of corn exceeds the quantity supplied. e. government should purchase the surplus to protect the farmers.