Which of the following statements is most consistent with the benefits-received principle of taxation?
A. People with high incomes should pay more taxes than people with low incomes.
B. A childless couple should not be required to pay taxes for the support of public schools.
C. Prosperous corporations should pay substantial taxes even if they use few government goods and services.
D. The best tax is the income tax.
Answer: B
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How do economists try to disentangle cause and effect?
What will be an ideal response?
Beginning from a long run equilibrium in an increasing cost industry, if there is a substantial, permanent fall in demand for industry output:
a. firms will leave the industry, the quantity produced will fall, and prices will end up lower than their initial long run equilibrium level. b. firms will leave the industry, the quantity produced will fall, and prices will end up higher than their initial long run equilibrium level. c. firms will leave the industry, the quantity produced will fall, and prices will end up at the same level as their initial long run equilibrium level. d. firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long run equilibrium level.
Other things equal, a country's long-run aggregate supply will shift to the right when the productivity of labor rises
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to decrease supply in the market for pizza?
a. Popularity of pizza induces a greater number of fast food joints to include pizza in their menu. b. Reports reveal that eating pizza increases the risk of stomach ulcers. c. Cheese prices increase because price supports for dairy farmers are removed. d. The price of burgers increases due an increase in the price of beef.