Should state taxes paid be deductible on federal taxes?
What will be an ideal response?
Opinions vary on this issue. Some argue that this "offset" allows for states to pass on higher
rates to other states through the federal system. Others argue that there are too many layers
of taxes currently and this deduction is necessary to keep taxes reasonable.
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During a recession,
A) real GDP is less than potential GDP. B) real GDP is equal to potential GDP. C) the actual unemployment rate is less than the natural unemployment rate. D) real GDP is greater than potential GDP. E) the relationship between real GDP and potential GDP no longer exists.
In a perfectly competitive industry, in the long-run equilibrium
A) the typical firm is producing at the output where its long-run average total cost is not minimized. B) the typical firm is earning an accounting profit greater than its implicit costs. C) the typical firm earns zero profit. D) the typical firm is maximizing its revenue.
The U.S. government
A. intervenes to prevent the monopolization of any market. B. forbids the creation of legal impediments to entry into any market. C. intervenes to prevent the monopolization of some markets and actively encourages the monopolization of others. D. encourages the permanent monopolization of all markets in which the monopolist has technical superiority over potential competitors.
For complementary goods, the coefficient of cross-elasticity of demand is:
A. negative. B. greater than one. C. positive. D. near zero.