Which of the following tax structures is potentially consistent with the concept of vertical equity?
a. A proportional tax
b. A progressive tax
c. A regressive tax
d. Any of these tax structures are potentially consistent with vertical equity
d
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Which of the following options is NOT a characteristic of a proprietorship?
A) single ownership B) unlimited liability C) double taxation D) easy to form and dissolve
Assuming the free flow of capital across borders, explain why a country that has a fixed exchange rate cannot have an independent monetary policy reaction curve.
What will be an ideal response?
Suppose that Christine values a baseball hat at $20, and Mark values one at $18 . The pretax price of a baseball hat is $14 . The government imposes a $5 tax on baseball hats, which raises the price to $19 . What is the deadweight loss from the tax?
Which of the following will lead to a depreciation of the U.S. dollar against the British pound?
A) an increase in British demand for U.S. imports B) an increase in U.S. interest rates C) a decrease in British demand for U.S. assets D) a decrease in U.S. demand for British goods