List four types of tax-deferred saving vehicles. How could tax-deferred saving vehicles, if modified, transform the U.S. income tax into a consumption tax?
What will be an ideal response?
Four types of tax-deferred saving vehicles are IRAs, Roth IRAs, Keogh plans, and 401(k) plans. If no limits were placed on contributions into tax-deferred saving vehicles so that all savings and investment were sheltered from double taxation, then a broad-based federal income tax would approximate a consumption tax.
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A competitive employer will hire inputs up to the point where the
A. price of the input equals the marginal product of the input. B. price of the input equals the price of the output. C. price of the input equals the marginal revenue product of the input. D. marginal product of the input reaches a maximum.
According to the Coase theorem, part of what is needed for private transactions to be efficient is that property rights
A) must be defined, but it does not matter who owns the property. B) must be defined, and it is crucial as to who owns the property. C) need not be defined as long as there are no transactions costs present. D) need to be defined by the government to avoid producers from exploiting high transactions costs.
The process by which risks are shared among many different assets or people is called:
A. the credit risk. B. the risk spread. C. diversification. D. the liquidity process.
The famous observation that households and firms interacting in markets act as if they are guided by an "invisible hand" that leads them to desirable market outcomes comes from whose 1776 book?
a. David Ricardo b. Thorstein Veblen c. John Maynard Keynes d. Adam Smith