If the Government Levies a One-Time Temporary Tax on the Young

question 87

Multiple Choice

If the government levies a one-time temporary tax on the young and gives the proceeds to the elderly, and both generations follow the life-cycle consumption pattern and are altruistically linked:

• A) both the young and the old will consume more.
• B) there will be a net increase in overall consumption.
• C) there will be a net decrease in overall consumption.
• D) there will be no change in overall consumption.

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Definitions:

Moot

Pertains to an issue that is debatable or questionable but has no practical value or relevance, often because circumstances have changed.

Directed Verdict

A ruling by the judge, after the plaintiff has presented her case but before any evidence is put forward by the defendant, in favor of the defendant because the plaintiff has failed to present the minimum amount of evidence necessary to establish his claim.

Jury Selection

The process of choosing jurors from the pool of potential jurors for a trial, through a series of questions and processes intended to ensure an impartial jury.

Breach of Contract

Not living up to a contract's condition, either written or verbal, in the absence of an acceptable legal reason.