The notion that equally situated individuals should be taxed equally is referred to as
a. horizontal equity.
b. vertical equity.
c. the benefits principle.
d. the Gini principle.
a
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A causal effect for a single individual
A) can be deduced from the average treatment effect. B) cannot be measured. C) depends on observable variables only. D) is observable since it is used as part of calculating the mean of individual causal effects.
Consider two situations: In situation A the production of widgets is monopolized by a single firm. In situation B the production of widgets is perfectly competitive. In both situations the supply of labor to widget makers is infinitely elastic at a wage of w. Which of the following statements is true?
a. The marginal value product of labor will be the same in the two cases. b. The marginal value product of labor is higher in case B than in case A. c. The marginal value product of labor is higher in case A than in case B. d. From the information given it is not possible to make a definite statement about the marginal value product of labor.
The export supply and import demand curves measure the domestic shortage and surplus, respectively, at different world prices
a. True b. False Indicate whether the statement is true or false
Explain the following statement by Arthur Okun: "Insistence on carving the pie into equal slices would shrink the size of the pie. This fact poses the trade-off between economic equality and economic efficiency."
What will be an ideal response?