Author Question: All of the following increase labor productivity except _________. A. the accumulation of skill ... (Read 33 times)

newbem · **on:** Jun 29, 2018

All of the following increase labor productivity except _________.

A. the accumulation of skill and knowledge
B. an increase in capital per hour of labor
C. an increase in consumption
D. the employment of a new technology

Question 2

The issue of fairness in taxes is a very controversial one. Compare and contrast both the ability-to-pay principle with that of the benefits received principle.

What will be an ideal response?

leeeep · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C An increase in consumption has nothing to do with changing labor productivity.

Answer to Question 2

There is much disagreement over what constitutes a fair tax system. One theory contends that people should bear tax burdens in proportion to the benefits that they receive from government expenditures. This is the benefits-received principle. Another theory contends that people should bear tax burdens in line with their ability to pay. This ability-to-pay principle has dominated U.S. tax policy.