One difference between sales and excise taxes is that:
A. sales taxes are only applied at the state level, while excise taxes are only applied at the
federal level.
B. excise taxes apply to a wide range of products, while sales taxes apply only to a select list
of products.
C. sales taxes are calculated as a percentage of the price paid, while excise taxes are levied
on a per-unit basis.
D. excise taxes are calculated as a percentage of the price paid, while sales taxes are levied
on a per-unit basis.
Answer: C
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If the market clearing price of computer tablets rises from $400 to $600, and the market clearing output decreases from 5 million to 4 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
The idea that a large public debt is "mortgaging the future of our children and grandchildren" is misleading because
a. it is the Federal Reserve that will be responsible for making interest payments on the debt. b. future generations will have to bear the opportunity costs of the resources that are used today. c. future generations will not be liable for the interest obligations of the national debt. d. future generations will inherit the interest income as well as the interest obligations.