Business Economics
Answer these questions in paragraph form.
- The simple case of a fixed per-unit tax is indicative of more complicated ones. Consider a proportional sales tax and a progressive sales tax. How do the tax revenues, and quantities produced compare in these various cases?
- Explain how value can be created simply by exchange even when nothing new is produced? [This is true for a monetary and for a barter economy].
- Explain how competitive privately issued currencies would work automatically to provide consumers with protection against inflation?
- Would interest exist in a pure exchange economy where no production occurred? Explain.
- Briefly contrast the static and dynamic views of monopoly and the policies appropriate for each.