(Consider This) Proponents of a value-added tax (VAT) claim that a VAT:
A. is progressive, leading to a more equitable distribution of income.
B. equalizes the tax burden between buyers and sellers of goods.
C. is proportional, so all income groups pay a fair share.
D. penalizes consumption and encourages savings and investment.
Answer: D
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An economic survey observed that a 20 percent cut in the price of a certain line of women's clothing, almost doubled the quantity demanded of the clothing. This led economists to conclude that the demand for this line of clothing is _____
a. highly elastic b. highly inelastic c. unit-elastic d. perfectly elastic e. perfectly inelastic
The ________ is the ratio of the number of people in the labor force to the total adult population
a. unemployment rate b. labor force c. labor force participation rate d. employment rate