Which of the following is not a potential problem with tax expenditures?
a. They compromise tax system fairness.
b. They make the tax structure less efficient.
c. They increase the political costs of the tax system.
d. They cause taxpayers to substitute towards favored activities.
d
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Rational expectations involve the assumption that
A) market participants make use only of information on the past performance of an asset in determining what they believe its price should be. B) market participants rarely change their minds about the correct price of an asset. C) financial markets are good at increasing liquidity, but poor at transmitting information. D) market participants makes use of all available information.
To protect the cod fishery off the northeast coast of the U.S., the federal government may limit the amount of fish that each boat can catch in the fishery. The result of this public policy is to:
A) shift the cod demand curve to the left. B) shift the cod demand curve to the right. C) shift the cod supply curve to the right. D) shift the cod supply curve to the left.
In the United States, currency in circulation is the largest component of the M1 money supply
a. True b. False Indicate whether the statement is true or false
In cases where no employer-specific skills are required for a particular job, a long-term relationship between an employer and an employee is unlikely
Indicate whether the statement is true or false