The "ability-to-pay" principle of taxation is the normative idea that
A) an equitable tax system is one in which high income individuals should bear a greater burden of taxes than low income individuals.
B) two individuals earning the same income should have equal ability to pay, all else constant.
C) each individual should voluntarily contribute according to her ability to pay taxes.
D) progressive taxes are more equitable than regressive taxes.
A
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A central bank disinflates. Output falls by 3% for one year, 2% the second year, and 1% the third year. If inflation fell by 2 percentage points, what was the sacrifice ratio?
A firm that has two or more owners who share decision-making power as well as the firm's profits is called
A) a corporation. B) a joint-stock company. C) a partnership. D) a non-profit organization. E) a single proprietorship.
The basic purpose of imposing legal reserve requirements on commercial banks is to:
A. Assure the liquidity of commercial banks B. Provide a device through which the credit-creating activities of banks can be controlled C. Provide a proper ratio between earning and no earning bank assets D. Provide the central banks with necessary working capital
The shape of a firm's ________ -run average cost curve depends on how costs vary with ________.
A. short; scale of operations B. long; a fixed factor of production C. long; scale of operations D. short; no fixed factor of production