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Interest exist in a pure exchange economy

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1. The simple caseof a fixed per-unit tax is indicative of more complicated ones. Consider aproportional sales tax and a progressive sales tax. How do the tax revenues,and quantities produced compare in these various cases?

2. Explain howvalue can be created simply by exchange even when nothing new is produced? [This is true for a monetary and for a barter economy].

3. Explain howcompetitive privately issued currencies would work automatically to provide consumers with protection against inflation?

4. Would interest exist in a pure exchange economy where no production occurred? Explain.

5. Briefly contrast the static and dynamic views of monopoly and the policies appropriate for each.

Reference no: EM131060597

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