This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The larger the marginal rate of substitution, the larger is the amount of one good that the consumer ... (Read 78 times)

hubes95

  • Hero Member
  • *****
  • Posts: 561
on: Jun 29, 2018
The larger the marginal rate of substitution, the larger is the amount of one good that the consumer is willing to give up in exchange for another good and still remain at the same level of satisfaction.
 
  Indicate whether the statement is true or false

Question 2

Some politicians have recently suggested changing the income tax system in the U.S. to a flat tax system where all taxpayers would pay the same percentage of their income in tax to the federal government.
 
  Explain how such a change can be analyzed in terms of efficiency. Do you believe that this tax will have equity effects as well?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ngr69

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

The flat tax will lower the cost of filing taxes for taxpayers and therefore increase the efficiency of government financing. However, this will place a larger tax burden on the poor than currently exists which may lead to some equity concerns.


hubes95

  • Member
  • Posts: 561
Reply 2 on: Jun 29, 2018
Gracias!

alexanderhamilton

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Compared with modern humans, Homo erectus has a larger face, lacks a chin and canine fossa, and has Compared with modern humans, Homo erectus has a larger face, lacks a chin and canine fossa, and has
Both the top and bottom pattern have the same frequency. However, the amount of on-time varies. Both the top and bottom pattern have the same frequency. However, the amount of on-time varies.
An IAC controls idle speed by controlling the amount of air that passes around the throttle plate. ... An IAC controls idle speed by controlling the amount of air that passes around the throttle plate. ...
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
How to integrate using inverse trigonometric substitution (Question 6) How to integrate using inverse trigonometric substitution (Question 6)
The apples of today are larger and sweeter than their ancestors, thanks to hundreds of years The apples of today are larger and sweeter than their ancestors, thanks to hundreds of years
Video: Complement Proteins Animation

For a complete list of videos, visit our video library