Will consumption taxes lead to more savings? Why or why not?
What will be an ideal response?
Consumption taxes have the effect of increasing the return from savings. This has both a substitution and an income effect; the substitution effect is positive, in that the higher returns from savings will cause people to save more. The income effect is negative because the higher returns make people feel better off and so they spend more instead of saving. Determining whether savings increases or decreases when tax rates are cut ultimately must be settled by careful research.
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The following table provides information about production at the XYZ-TV Company.Number of WorkersTVs ProducedMarginal ProductValue of Marginal Product00------13535$35,00026833$33,00039931$31,000412829$29,000515527$27,000How many workers will XYZ-TV Company hire if the going wage for TV production workers is $32,000?
A. 0 B. 1 C. 2 D. 3
Briefly describe some of the current policies the United States has in place to limit both fairly and unfairly traded goods
What will be an ideal response?
According to the Latin phrase ceteris paribus:
a) Nothing else changes. b) Things do not remain equal. c) Resources are limited. d) There is no government intervention.
In a market system, which of the following is a major benefit of making the firm's owners and investors exclusively shoulder the business risk?
A. Those who deeply dislike business risk will not have anything to do with the business B. This allows firms to more easily attract labor and other suppliers of inputs C. This reduces the business risk in the economy D. It makes it easier for the government to monitor and manage the business risk