Suppose a tax is implemented to fund low-income housing. Which principle of taxation is most appropriate as a guide to evaluating the tax?
a. the benefit principle
b. the ability-to-pay principle
c. a combination of the benefit principle and the ability-to-pay principle
d. the mobility principle
b
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Which of the following observations is true?
A. TFC remains the same irrespective of units of output produced. B. TVC remains the same irrespective of units of output produced. C. TVC falls as the unit of output increases. D. AFC increases as output increases further and further.
Which of the following characteristics does a public good have?
a. Nonexcludable and rival b. Excludable and rival c. Non-excludable and nonrivalrous d. Excludable and nonrivalrous
Define the following terms and explain their importance to the study of economics
a. price elasticity b. complements c. substitutes d. cross elasticity e. supply elasticity
Distinguish between the economist's definition of profit and the accountant's definition. Which is superior for decision making?