At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's net investment for the year totaled

If a government decides to move from a regressive tax system to a progressive tax system, there will be a(n) ________ in equity and a(n) ________ in efficiency

A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase

As a consumer spends a larger share of his income on a particular good, the price elasticity of demand for that good:

A) increases. B) decreases. C) initially decreases then increases. D) remains the same.