Suppose a Carpenter Builds a Bookcase for an Attorney in Exchange

question 122

Multiple Choice

Suppose a carpenter builds a bookcase for an attorney in exchange for legal services.This transaction is

• A)a means of tax avoidance
• B)likely to be taxed
• C)not part of the economy's total production
• D)a means of tax evasion
• E)likely to result in double taxation

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Definitions:

Self Regulating

A system or market that is able to adjust and correct itself without external intervention.

Keynes

John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Aggregate Demand

The total demand for all goods and services within an economy at a particular time and price level, including consumption, investment, government spending, and net exports.

Say's Law

An economic theory proposing that the production of goods creates its own demand, attributed to the French economist Jean-Baptiste Say.