Dynamic tax analysis is based on the recognition that as tax rates are increased
A) tax revenue collections will eventually decline.
B) tax revenue collections will continually increase.
C) tax revenue collections will change at the same rate as the tax rates.
D) tax revenue collections will increase at a faster rate than the tax rate change.
A
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Bank deposits denominated in Mexican pesos are an example of foreign exchange
a. True b. False
If the typical firm in a perfectly competitive market is currently earning a 5% economic profit, what will happen in this market in the long run?
a. new firms will enter until the economic profits have disappeared. b. firms will exit until the economic profit reaches 10%. c. firms will neither enter nor exit, since 5% economic profit is enough to maintain the existing number of firms in the market. d. It depends on the rate of normal profit in this market.
Holding everything else constant, the absolute value of the price elasticity of demand for Saucony tennis shoes is ________ the price elasticity of demand for tennis shoes in general
A) less than B) equal to C) twice as great as D) greater than
In a production possibilities frontier graph, the cost of producing more units of a good is measured by the
A) dollar value of the additional output. B) area in the arc between the PPF and a straight line drawn between the starting point and the ending point. C) dollar value of the resources used to produce the good. D) amount of the other good or service that must be forgone. E) None of the above answers is correct.