An ad valorem sales tax can be thought of as

A. not part of the tax base.
B. a progressive tax.
C. a proportional tax.
D. none of these.


Answer: C

Economics

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Refer to Price Ceiling. After the price ceiling is imposed, consumers' surplus is equal to

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a. area A.
b. area A + B.
c. area A + B + D.
d. area A + B + C + D + E + F + G.

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A lender of the last resort refers to

A) a role of the central bank to prevent bank runs for temporary problems of liquidity. B) a role for the government to ensure that the central bank has adequate reserves. C) a reason for regulating banks. D) the need for market based regulations in the banking industry.

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An example of moral hazard is

a. A taxi driver paid per mile taking the shortest route b. a piece-rate garment worker shirking more than a per jour worker c. an hourly salesman working less hard than a commission salesman d. an author on contract going to as many book signings as one with a percentage royalty rate

Economics

If an employment situation is characterized by adverse selection,

a. there are too many applicants for each job b. there are too few applicants for each job c. there are exactly the right number of applicants for each job d. there is an excess supply of overqualified applicants for each job e. there is an excess supply of underqualified applicants for each job

Economics