Broad-based taxes are less likely to be shifted than partial taxes are.
Answer the following statement true (T) or false (F)
True
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If the Fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as
A) direct policy making. B) active policy making. C) passive policy making. D) fiscal policy making.
Suppose Ernie gives up his job as a financial advisor for pets, for which he earned $30,000 per year, to open up a store selling spot remover to Dalmatians. He invested $10,000 of his savings, which had been earning 5 percent interest. This year's revenues in the new business were $50,000 and explicit costs were $10,000 . Calculate Ernie's economic profit
a. $10,000 b. $50,000 c. $20,000 d. $40,000 e. $9,500
Most economists think that the economy's self-correcting mechanism is
a. relatively rapid. b. rapid in the short run and sluggish in the long run. c. sluggish in the short run and rapid in the long run. d. relatively sluggish.
Senator Blacklung represents a state that grows a significant amount of tobacco. Not only do many of his constituents work for businesses in this industry, but the tobacco firms also make generous contributions to his reelection campaign. According to public choice theory, which of the following bills would Senator Blacklung be most likely to support?
a. a bill proposing an increase in the tax on cigarettes to fund urban renewal programs across the nation b. a bill that would provide substantial subsidies for tobacco growers c. a bill proposing increased funding for a national antismoking awareness campaign financed by an increase in the tax on cigarettes d. a bill that would prohibit senators from accepting campaign contributions from firms who are involved in the production or sale of tobacco products