Describe the advantages that a negative income tax has over other programs that have the same purpose.
What will be an ideal response?
First, a negative income tax is less costly to administer than other poverty-fighting programs because it can be administered routinely by the IRS. Second, it avoids the stigma of handouts. Finally, it actually creates an incentive to work because the more income earned, the higher is the household's after-tax income.
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A group of banks that agree to lend one another money in case of unexpectedly large withdrawals is a ________
Fill in the blank(s) with correct word
Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers. As a result,
A) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. B) the quality of health care provided is less than it would be if benefits were taxed. C) politicians are encouraged to raise income and payroll taxes. D) the federal government spends more than it receives in tax revenue.
What is the objective of environmental accounting? Are a country's national accounts likely to show more or less income than with traditional GDP?
What will be an ideal response?
If a firm’s activities generate detrimental externalities, the marginal social cost will be less than the marginal private cost.
Answer the following statement true (T) or false (F)