Excise taxes are

a. proportional since everyone pays the same tax rate
b. progressive since richer people buy more things
c. regressive since they represent a greater percent of poor people's incomes
d. proportional taxes since everyone has the same tax bill
e. progressive since richer people have higher tax bills

C

Economics

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Give several economic examples of how to test various joint linear hypotheses using matrix notation

Include specifications of R? = r where you test for (i) all coefficients other than the constant being zero, (ii) a subset of coefficients being zero, and (iii) equality of coefficients. Talk about the possible distributions involved in finding critical values for your hypotheses. What will be an ideal response?

Economics