A tax loophole is
A. an illegal method by which individuals or corporations avoid paying the taxes they legally owe.
B. a provision in the tax code that allows individuals or corporations to reduce their tax burdens legally by meeting certain conditions.
C. a tax surcharge on incomes within certain ranges.
D. a provision in the tax code that allows individuals or corporations to shift the economic incidence of a particular tax on to someone else.
Answer: B
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In situations where new technologies are considered complementary to workers, demand for these workers will ________, resulting in ________ in the equilibrium wage
A) decrease; a decrease B) increase; a decrease C) increase; an increase D) decrease; an increase
Ceteris paribus is:
A. the Latin term for "all other things being the same." B. only necessary for the definition of the law of demand. C. often used by economists to isolate the effect of a multiple changes that are important. D. the Latin term for "as things change only consider these changes".
A budget constraint illustrates the
a. prices that a consumer chooses to pay for products he consumes. b. purchases made by consumers. c. consumption bundles that a consumer can afford. d. consumption bundles that give a consumer equal satisfaction.
Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice. What would we expect to happen to the equilibrium price and quantity in the market for orange juice?
a. Price will increase; quantity is ambiguous b. Price will increase; quantity will increase c. Price will increase; quantity will decrease d. Price will decrease; quantity is ambiguous e. The impact on both sides is ambiguous