If it is assumed that there are absolutely no taxes in an economy, then aggregate consumption will be drawn as a function of:
a. disposable income.
b. real GDP.
c. government expenditure.
d. private income.
e. government transfers.
b
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The price of a resource declines when:
a. both the demand for and the supply of the resource declines in the same proportion. b. demand remaining constant, supply of the resource declines. c. supply remaining constant, the demand for the resource declines. d. both the demand for and the supply of the resource increases in the same proportion. e. both the demand for and the supply of the resource declines, but supply falls by a greater proportion than demand.
The ability-to-pay principle claims that a person should pay taxes according to
a. the level of public education that the person has received throughout his lifetime. b. how many government services that person will receive. c. how well that person can shoulder the tax burden. d. the level of debt that the person has.