Ad valorem taxation means
A) that only the value added by a service provider is taxed.
B) that the tax rate is a percentage of the price paid for a product.
C) a negative income tax.
D) a progressive property tax imposed in some states.
B
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A change in economic output is potentially efficient
A. only if no one is made worse off. B. if the value of the resulting gains exceeds the value of the resulting losses. C. if the value of the resulting gains exactly equals the value of the resulting losses. D. if the value of the resulting gains is less than the value of the resulting losses.
Compare and contrast the views of new classical economists and mainstream economists on the issue of policy rules versus the use of discretionary monetary and fiscal policy.
What will be an ideal response?
The trends displayed in the table can best be explained by
A) service industries have increased as a proportion of the economy and they tend to have higher nominal wage rates. B) the inflation rate has been rising over the time period. C) the real wage rate has increased at a rate about equal to the inflation rate. D) the nominal wage rate has increased at a rate about equal to the inflation rate. E) None of the above can explain the trends in the figure.
A perfectly competitive firm maximizes its profit by producing at the point where
A) total revenue equals total cost. B) marginal revenue is equal to marginal cost. C) total revenue is equal to marginal revenue. D) total cost is at its minimum. E) total revenue is at its maximum.