The inflation tax alters people's behavior and creates a deadweight loss. Explain
Higher inflation gives people greater incentive to hold less money. Efforts to hold less money, such as going to the bank more frequently, are costly.
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In a regressive tax system, ________
A) low income households pay a higher percentage of their income as taxes B) high income households pay a higher percentage of their income as taxes C) all households pay the same amount of taxes irrespective of their income D) all households pay the same percentage of their income as taxes
The consumption of an additional unit of a good provides additional satisfaction, which is called:
A. average utility. B. total benefit. C. marginal social benefit. D. marginal utility.
Refer to the table below. The average benefit of 2 units of activity is:Units ofActivity TotalCostTotalBenefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. $60 B. $80 C. $20 D. $40
In the very short-run period,
a. the price elasticity of supply is very elastic. b. the price elasticity of demand is very elastic. c. the cross elasticity of demand is very inelastic. d. income elasticity is very elastic. e. the price elasticity of supply is very inelastic.