For which of the following reasons is VAT considered a very important revenue generator for a ...

For which of the following reasons is VAT considered a very important revenue generator for a government?
 a. It is regressive in nature
  b. It targets only individuals in the high income class
  c. It cannot be avoided by individuals
  d. It boosts a country's export
  e. It lowers a country's import

Question 2

Assuming that coffee and tea are substitutes, a decrease in the price of coffee will result in
 a. A leftward shift in the demand for tea.
 b. A downward movement along the demand curve for tea.
  c. A rightward shift in the demand for tea.
 d. An upward movement along the demand curve for tea.

Question 3

A change in aggregate expenditures for reasons other than the price level will shift the aggregate demand curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

Which of the following would not be considered an indirect tax?
 a. A value-added tax
  b. A tax on wheat export
  c. A tax on imported automobiles
  d. A tax on the income of a computer manufacturer
  e. A sales tax on cigarettes

Question 5

Which of the following best represents the effects of a decrease in the price of tea?
 a. A leftward shift in the demand for tea.
 b. A downward movement along the demand curve for tea.
  c. A rightward shift in the demand for tea.
 d. An upward movement along the demand curve for tea.

Question 6

A change in taxes of a given amount affects an individual's consumption spending by less than that amount, because the marginal propensity to consume is less than 1.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

Which of the following is a form of a direct tax?
 a. Personal income tax
  b. Sales tax
  c. Excise duty
  d. Import tariff
  e. Value-added tax

Question 8

If peanut butter and jelly are complements, but peanut butter and tuna fish are substitutes,
 a. an increase in the price of peanut butter will increase the demand for jelly.
  b. an increase in the price of peanut butter will decrease the demand for jelly.
  c. an increase in the price of peanut butter will decrease the demand for tuna fish.
  d. a decrease in the price of peanut butter will increase the demand for tuna fish.

Question 9

When all the factors of aggregate expenditure are influenced by income, the multiplier is no longer solely a function of the marginal propensity of consumption.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

A(n) _____ is an indirect tax imposed on each sale at each stage of production.
 a. personal tax
  b. value-added tax
  c. excise duty
  d. sales tax
  e. ad-valorem tax

Question 11

Which of the following is not held constant when moving along a product's demand curve?
 a. The price of the product itself.
 b. The expected price of the product in the near future.
  c. Income.
 d. Prices of complementary goods.
 e. Prices of substitutes.