What is the benefits-received principle? What are two arguments against this principle?
What will be an ideal response?
The benefits-received principle is the belief that higher taxes on the rich are justified because the rich have received a disproportionately large benefit of the services, infrastructure, and protections the government provides. One argument against this principle is the idea that it is hard to quantify exactly how large the government benefits are, which makes it difficult to say for sure that the rich have actually received a disproportionately large share of the benefits. Another argument against this principle is that the benefits received by the rich are available to everybody, and just because the rich happened to take greater advantage of the benefits does not mean that the poor were being denied the benefits. It may not be fair to penalize the rich for making the most of the government services they received because those services were available to everyone.
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Under the current structure of Medicare, economic theory indicates that the movement of the baby boom generation into the retirement phase of life will
a. reduce the share of healthcare services paid for by a third party. b. push both healthcare prices and expenditures upward. c. increase the incentive of suppliers to provide healthcare services at a low cost. d. increase the incentive of consumers to economize on their use of healthcare.
Output for a simple production process is given by Q = KL, where K denotes capital and L denotes labor. The price of labor is $10 per unit and the price of capital is $2 per unit.If at the current level of production the marginal product of labor is 4 while the marginal product of capital is 2, then in order to minimize your costs of production you should use
A. more of both inputs. B. the same amount of both inputs. C. more capital and less labor. D. more labor and less capital.
Induced taxes...
What will be an ideal response?
A majority of states have a minimum wage that is higher than the federal minimum wage.
Answer the following statement true (T) or false (F)