A tax on gasoline is an incentive that encourages people to drive smaller more fuel-efficient cars
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Which one of the following states a central element of the economic way of thinking?
What will be an ideal response?
As the tax rate increases, the absolute value of the tax multiplier
A. increases. B. does not change. C. decreases. D. could either increase or decrease depending on the value of the MPC.
Answer the following statements true (T) or false (F)
1. A change in business taxes and regulation can affect production costs and aggregate supply. 2. If productivity increases, then the per-unit production cost decreases. 3. Macroeconomic equilibrium in the short run always occurs at full-employment GDP. 4. If the cost of resources decreases, then real domestic output will increase.
In the 1930s the United States charged an average tariff rate
A) that cut its exports to other countries by 50 percent. B) that exceeded 50 percent. C) that was less than its average tariff rate in 2007. D) that was less than 2 percent.