Explain why economists today tend to favor a comprehensive personal consumption tax
What will be an ideal response?
Part of the reason for the increasing popularity of consumption taxes is a growing concern with the low saving rate in the United States. Since 1978 there has been concern with productivity growth, and many point to the inadequacy of saving as the culprit.
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If a price ceiling is a binding constraint on a market, then a. the equilibrium price must be below the price ceiling
b. the quantity supplied must exceed the quantity demanded. c. sellers cannot sell all they want to sell at the price ceiling. d. buyers cannot buy all they want to buy at the price ceiling.
The exit of existing firms from a competitive market will
a. increase market supply and increase market prices. b. increase market supply and decrease market prices. c. decrease market supply and increase market prices. d. decrease market supply and decrease market prices.