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The two largest parts of the federal revenue system in the United States are the payroll tax and the individual income tax. What can we say about the compliance costs of these two taxes? a)The income tax has lower compliance costs. b)The payroll tax has lower compliance costs. c)The compliance costs of the payroll tax and the income tax are very similar d)All of the above. e)(a) and (c) only.
Illustrate what were its consumption and government expenditures on goods and services.
Suppose that product prices start rising but nominal wages do not. In that case,
A street vendor reduces the price of gelato from $3.50 to $2.75, the number of gelatos sold per day rises from 600 to 750. What is the price elasticity of demand for gelato?
q1. if the equilibrium level of aggregate expenditure is 80 billion as well as there is a reduction in consumption of 2
Consider the expectations theory (of the term structure) with a term premium. What is the interest rate on a 5-year bond today if the term premium for a 5-year bond is 2% and 1-year interest rates are expected to remain constant at their current leve..
A country has national saving of $70 billion, government expenditures of $20 billion, domestic investment of $30 billion, and net capital outflow of $40 billion. What is its supply of loanable funds?
It has been estimated that the price elasticity for cigarettes is 0.164. Assuming there are currently no taxes on cigarettes, to reduce cigarette purchases 5%, government would need to tax cigarettes enough t.:
In the short run, real GDP will decrease when the price level falls due to:
A property is sold for $530,000 with selling costs of 7% of the sales price. The mortgage balance at the time of sale is $150,000. The property was purchased 5 years ago for $385,000. A) What is the adjusted basis for this property? B) What is the ta..
The student could also have earned $15,000 by getting a job instead of attending college and 10 percent interest on expenses he or she incurs at the beginning of the year. Calculate the explicit, implicit, and the total economic costs of attending..
The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one anot..
What is the short-run market supply curve? Determine the short-run equilibrium price and quantity in this industry.
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