Excise taxes are a form of sales tax.
Answer the following statement true (T) or false (F)
True
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Automatic stabilizers include
A) changes in induced taxes and changes in needs-tested spending. B) increases or decreases of tax rates and changes in needs-tested spending. C) changes in induced taxes and changes in discretionary spending. D) changes in discretionary spending and changes in needs-tested spending. E) changes in the federal funds interest rate brought about by Fed policy.
In the short run, a monopolist: a. always suffers an economic loss
b. always earns an economic profit. c. always earns a normal rate of return. d. may make an economic loss, an economic profit, or zero economic profits.
Prices serve the public interest by
a. making resource owners wealthy. b. rationing scarce resources. c. keeping poor people from purchasing more than they can afford. d. forcing the government to participate in the market.
A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move
a. necessarily raises GDP. b. necessarily decreases GDP. c. doesn't change GDP because gambling is never included in GDP. d. doesn't change GDP because in either case his income is included.