Economists Agree That the "Rounding Tax" Which Would Be Imposed

question 65

True/False

Economists agree that the "rounding tax" which would be imposed on consumers if we eliminated the penny is substantial,as high as $600 million.

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Definitions:

Quantity Minimized

Refers to the outcome of an optimization problem where the goal is to find the smallest possible value of a certain quantity.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and multiple independent variables by fitting a linear equation to observed data.

Regression Slope Coefficients

The estimates that measure the relationship between the dependent variable and each independent variable in regression analysis.

Y-intercept

The point where a line, curve, or surface intersects the y-axis of a coordinate system.