The optimal taxation system is a tax system that

A. minimizes the total tax burden.
B. minimizes the overall excess burden.
C. maximizes tax revenues.
D. is highly progressive.


Answer: B

Economics

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If the MPS = 0.2, the multiplier would be

A) 0.5. B) 1. C) 2. D) 5.

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The "double coincidence of wants" is

A) what is needed to use money. B) eliminated with the use of money. C) money's role as a unit of account. D) how value is stored when we transact with money. E) eliminated when we barter instead of using money.

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To counter parents' concerns about fast foods and childhood obesity, McDonalds considered:

A) a variety of menu items such as milk shakes and candy. B) a variety of menu items such as apple slices, fruit juices, peanut butter and jelly sandwiches, and carrot sticks. C) not changing the menu. D) all of the above.

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If Ms. Anniston transfers $1,000 from her checking account to her money market account, then

a. M1 falls and M2 remains the same. b. M1 falls and M2 rises. c. both M1 and M2 rise. d. M1 remains the same and M2 rises.

Economics