The idea of a carbon tax makes more sense at the ________ level because it is ________.
A. individual; easier to monitor
B. corporate; easier to monitor
C. individual; going to have a larger impact
D. corporate; going to have a larger impact
Answer: B
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The marginal tax rate refers to the tax rate charged on the:
A. last dollar a taxpayer earns. B. income earned from buying investments and selling them at a higher price. C. earnings of individuals. D. value of a good or service being purchased.
If the equilibrium price of an airline ticket is $400 and the government imposes a price floor of $500 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium
a. True b. False Indicate whether the statement is true or false
Refer to the above figure. The government has just engaged in expansionary fiscal policy shifting the aggregate demand curve from AD 1 to AD 2 . Interest rates have started to rise. Which of the following statements is true in the short run?
A) Real GDP will be $14 trillion since the effect of government spending is not influenced by interest rates. B) Real GDP will fall back to $11 trillion since the effect that increased government spending has on real GDP is short lived. C) Real GDP will go beyond $14 trillion as businesses and consumers react to the increase in interest rates. D) Real GDP will end up somewhere between $11 and $14 trillion as businesses and consumers reduce their spending in response to the increase in interest rates.
Proponents of deregulation point to all of the following industries as examples of successful deregulation except for:
A. airlines. B. pharmaceuticals. C. railroads. D. interstate trucking.