Using the principle of vertical equity, it is easy to argue in ...

[Awilson837]

Using the principle of vertical equity, it is easy to argue in favor of _____.
 
  a. sumptuary taxation
  b. progressive taxation
  c. regressive taxation
   d. none of the above

Question 2

Suppose the production function for T-shirts can be represented as q = L0.25K0.75. Show that the isoquants for this function are convex.
 
  What will be an ideal response?

[micaelaswann]

Answer to Question 1

d

Answer to Question 2

The slope of the isoquant is -MPL/MPK = -K/3L. As L increases and K decreases, this value becomes absolutely smaller implying a flatter slope.