Answer the following statements true (T) or false (F)
1. When an excise tax or sales tax is imposed on a product, the sellers are always able to shift the burden of the tax on to the buyers.
2. The overall tax structure of the United States is proportional or slightly regressive.
3. The state and local tax structure is largely progressive.
4. In the U.S., the progressive income-tax system substantial redistributes income.
5. In the U.S., the taxes mostly come from the rich and government spending mostly goes to programs that benefit the rich.
1. F
2. F
3. F
4. F
5. F
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An increase in demand means that:
A. the demand curve has shifted to the right. B. price has declined and, therefore, consumers want to purchase more of the product. C. given supply, the price of the product will decline. D. the demand curve has shifted to the left.
Suppose a concert by Rihanna and a basketball game played by the Houston Rockets are substitutes, then which of the following is TRUE?
A) If the price of a ticket to a Rockets game increases, then the demand for Rihanna tickets will fall. B) If the price of a ticket to a Rockets game decreases, then the demand for Rihanna tickets will fall. C) If the price of a ticket to a Rockets game increases, then the demand for Rihanna tickets will remain unchanged. D) The price of a ticket to a Rockets game will always equal the price of a ticket to a Rihanna concert.
A central bank's balance sheet would categorize each of the following as liabilities, except:
A. accounts of the commercial banks. B. currency. C. the government's account. D. loans.
Externalities measure
A. Either costs or benefits of a market activity borne by a third party. B. Only costs of a market activity borne by a third party. C. Only benefits of a market activity borne by a third party. D. None of the choices are correct.