The price elasticity of demand for gasoline is 0.27 and for wine is 2.9 . If the government had the choice of taxing only one, which of the following should it choose?
a. tax gasoline
b. tax wine
c. tax neither, but raise the price elasticity of demand for each
d. tax neither, but lower the price elasticity of demand for each
e. tax neither, but raise the price elasticity of demand for gasoline and lower it for wine
A
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A flat tax:
A. takes the same percentage of taxes from income from all taxpayers. B. requires those with low incomes to pay a smaller percentage of their income than high-income people. C. is levied so that low-income taxpayers pay a greater proportion of their income toward taxes than high-income taxpayers. D. taxes everyone the same amount, regardless of their income.
Which of the following is true?
A. If capital is highly mobile, fiscal policy then loses its effectiveness under a fixed exchange rate. B. Fixed exchange rates encourage countries to have different goals, priorities, and policies with respect to macroeconomic variables. C. Countries that want to have a fixed exchange-rate regime should be willing to refrain from policy changes that lead to large international capital flows. D. For a floating exchange rate to work for a country, it cannot have an inflation rate that is much above the inflation rate(s) of its primary trading partners.
In 2011, what percent of adults in the U.S. were college graduates or higher?
A. 10% B. 30% C. 50% D. 70%
______ is produced by an investment of time and other resources in education, training, and experience:
A) Human capital B) Physical capital C) Entrepreneurship D) Technological knowledge