Personal income taxes:
a. make recessions and inflationary episodes more severe.
b. make recessions and inflationary episodes less severe.
c. make recessions more severe and inflationary episodes less severe.
d. make recessions less severe and inflationary episodes more severe.
e. have no effect on the severity of recessions and inflationary episodes.
b
You might also like to view...
The price elasticity of demand is -1.5. The price elasticity of supply is 1.5. The fraction of a specific tax that is borne by producers is ________
A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1
If the cross-elasticity of demand for two goods is negative, this means that:
a. only the poor will buy the goods. b. they are normal goods. c. the goods are substitutes. d. the goods are complements.
Pollution taxes are more efficient in cleaning up the environment than direct controls. What role is there for direct controls?
a. They are useful standby mechanisms. b. They are useful if it is decided to prohibit the substance altogether. c. They are useful where dependable metering devices are not available or prohibitively costly to install. d. All of the above are true.
Figure 9-15 depicts the cost curves for a perfectly competitive firm. This firm’s short run supply curve is the section of the MC curve between points
a. A and D.
b. B and D.
c. C and D.
d. B and C.