To determine horizontal equity, two taxpayers with
A. The same gross incomes should be compared for their effective tax rates.
B. The same taxable incomes should be compared for their effective tax rates.
C. Different gross incomes should be compared for their effective tax rates.
D. Different taxable incomes should be compared for their nominal tax rates.
Answer: A
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An increase in the price level real wealth, which causes consumption to
A) raises; decrease B) lowers; increase C) lowers; decrease D) raises; increase
Which of the following is the best example of a good or service with an external benefit?
A) gasoline B) education C) garbage disposal D) fertilizers E) bread
Students can change the direction of the greater society through volunteering and other forms of involvement. They are also subject to the greater economy and environment. In the 1990s, college students, for the most part:
a. Enjoyed a strong economy with multiple job choices and a technology explosion. b. Flooded into social work and helping others professions c. Questioned authority and dealt with years of unrest and change d. Conformed and were very conservative, held traditional values
When output is less than the economy's long-run capacity, which of the following is most likely to occur?
a. an abnormally low rate of unemployment b. reductions in real interest rates and real resource prices c. a sharp increase in imports d. a government budget surplus