A candidate in the 1992 presidential election argued that our current federal income-tax system should be replaced with a flat-tax. That is, every individual should pay the same percentage of income in federal taxes regardless of his or her income
Evaluate the merits of this policy. In your answer, be sure to include a discussion of both the equity and efficiency considerations of such a tax proposal.
This tax would be more efficient because the tax would be difficult to shift or to evade. This tax may not be considered equitable, because high-income and low-income people would pay the same percentage of their income in taxes.
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If the price of milk increased by 5 percent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 percent
A) the supply curve of milk has shifted rightward. B) the price elasticity of supply of milk is greater than one. C) milk is more of a luxury than a necessity. D) milk is more of a necessity than a luxury.
If the fractional reserve system were to cease to exist, the banking system would be able to create money
Indicate whether the statement is true or false