The Community Charge was a poll tax to fund local government in the United Kingdom, instituted in 1989 by the government of Margaret Thatcher. It replaced the rates that were based on the national rental value of a house
It was a fixed tax per adult resident. Is this tax a proportional, progressive or regressive tax? Explain your answer.
This is essentially a regressive tax since the amount of tax is independent of one's income. Therefore, as income rises the percent of your income paid actually declines.
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Consider a stock with a 50 percent probability of zero net earnings and a 50 percent probability of net earnings equal to $20 per share each year continuously in the future. Furthermore, assume that people are risk averse. That is, they will have to be compensated for uncertainty accompanying variation in their future wealth. If the interest rate were 5 percent, how much would people be willing
to pay for a share of this stock? a. $10 b. $200 c. less than $200 d. more than $200 e. $400
For a monopolist, marginal revenue is
a. equal to price, as it is for a perfectly competitive firm. b. less than price, as it is for a perfectly competitive firm. c. equal to price, whereas marginal revenue is less than price for a perfectly competitive firm. d. less than price, whereas marginal revenue is equal to price for a perfectly competitive firm.