Tax on consumption is a tax on the using of goods or services. Sales tax is an example of tax on consumption. If you go to the store and buy clothes, the tax calculated from that is because you bought the items. If you went and got a haircut and they charge tax, you are paying the tax on consumption of the haircut service you received.
Scarce resources are resources that have limited availability relative to desired use. They include labor, capital, land, or entrepreneurship. There is also the term scarcity, which denotes condition of limited resources and unlimited wants and needs. Resources are limited, so if a manufacturer uses fewer scarce resources, the benefit will be that the product would be less expensive to produce.
Answer:
a decrease in the required reserve ratio
Explanation:
The Federal Reserve utilises various strategies to control money supply to the economy. Money supply is the amount of money that is held by by the public in an economy.
The various methods used by the Federal Reserve to regulate money supply includes discount rate, reserve ratio, and open market operations.
Money supply will increase when the reserve ratio for commercial banks is decreased. This means less of their funds is required to be witheld from the public.
On the other hand an open market sale will mop up the cash in the economy, and an increase in discount rate (rate of lending to banks) will also cause a decrease in money supply.
Personal human capital is defined as the <em>present value </em>of all <em>future </em>wages. So, you can increase your personal human capital by increasing your future earning potential. There are many ways to do this including investing in your education, working on your social and professional networking skills, and getting on the job training.
