The ability to pay principle suggests that:
a. traditional exemptions should be removed since they are more frequently used by people with ability to pay more taxes.
b. people with different levels of income should be treated in the same manner
c. individuals receiving the benefits should be those who pay for them.
d. those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes.
d
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Is the image of the typical American worker as a blue-collar worker true? Substantiate your answer with facts.
What will be an ideal response?
The slope of the production possibilities curve is
A) positive and increasing. B) the opportunity cost of one good in terms of the other. C) positive and decreasing. D) positive.
Which of the following is not an advantage of cost-plus pricing?
A) If a firm is selling multiple products, it ensures that the firm's prices will cover costs that are difficult to assign to one product. B) It ensures that the firm will maximize its profits. C) It is easy to calculate. D) It requires little information.
The equilibrium effects of a temporary increase in government spending include
A) an increase in the real wage and an increase in the real interest rate. B) an increase in the real wage and a decrease in the real interest rate. C) a decrease in the real wage and an increase in the real interest rate. D) a decrease in the real wage and a decrease in the real interest rate.