The simple caseof a fixed per-unit tax is indicative of more complicated
January 8th, 2018
1. The simple caseof a fixed per-unit tax is indicative of more complicated ones. Consider aproportional sales tax and a progressive sales tax. How do the tax revenues,and quantities produced compare in these various cases?2. Explain howvalue can be created simply by exchange even when nothing new is produced?[This is true for a monetary and for a barter economy].3. Explain howcompetitive privately issued currencies would work automatically to provideconsumers with protection against inflation?4. Would interestexist in a pure exchange economy where no production occurred? Explain.5. Brieflycontrast the static and dynamic views of monopoly and the policies appropriatefor each.