Goals of efficiency and equity in tax policy are
a. complementary in most countries.
b. necessary for application of the ability-to-pay principle.
c. often in conflict with each other.
d. easier to achieve when tax codes are complex.
c
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Normative economics answers the question, "What ought to be?" Positive economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"
Indicate whether the statement is true or false
Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit diminishing marginal rate of substitution. Suppose there is a decrease in the market price of this good. Then
A) both her utility and her consumer surplus will increase. B) her consumer surplus will increase, but her utility will remain the same. C) her utility will increase, but her consumer surplus will remain the same. D) her consumer surplus will increase, but the change in her utility is unknown without more information.
In 2003-2004, over one-third of Black and Hispanic students attended schools that were 90% or more minority; over two-thirds attended schools that were 50% or more minority
Indicate whether the statement is true or false
In a proportional tax system each individual would pay the same dollar amount in taxes
a. True b. False Indicate whether the statement is true or false