Ad valorem taxes
A. are based on income levels.
B. are paid as a fixed percentage of a good's unit price.
C. are not used in the United States.
D. are accessed based on the costs of producing the goods or services.
Answer: B
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Refer to Figure 13-4. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?
A) It will remain constant. B) It will rise. C) It will fall. D) not enough information to answer the question
A general sales tax comes close to _____
a. meeting the budget needs of state governments b. approximating a consumption tax c. approximating an income tax d. a perfectly regressive tax
The Principle of Increasing Opportunity Costs states that:
A. opportunity costs increase when too little is produced. B. when increasing production, resources with the lowest opportunity costs should be used first. C. productive people do the hardest tasks first. D. when increasing production, resources with the lowest opportunity costs should be used last.
A long-lived cartel maximizes its joint profits by restricting production to push up prices. Firm A cheats by temporarily raising its production. Which response by Firm B illustrates a tit-for-tat game?
a. Firm B temporarily raises its prices. b. Firm B temporarily raises its production. c. Firm B permanently lowers its production. d. Firm B permanently lowers its prices.