What do taxes do?
(a) Impact the incentive to use resources efficiently
(b) Transfer income from the person or entity paying taxes to
other individuals or entities
(c) Affect the relative prices of goods, services and resources
(d) All of the above
(e)
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Which of the following is the best indicator of the performance of the national economy?
a. The budget deficit of the federal government b. The stock of capital goods (machinery) in the nation c. The nation's stock of money d. The balance of trade with other nations e. The value of the final goods and services produced in the nation
Historically, as recessions have ended the unemployment rate declined
a. gradually to near zero. b. rapidly to near zero. c. gradually to a rate of about 5%-6%. d. rapidly to a rate of about 5%-6%.
Output choices are made necessary within a market because of:
A. Inefficient use of resources. B. High prices for goods. C. Scarcity of resources. D. Advancing technology.
Suppose that a bond is purchased at a discount (meaning that it is sold for less than face value). Could the yield to maturity ever be less than the coupon rate? Could the holding period return be less than the coupon rate? Explain.
What will be an ideal response?