Which of the following statements is TRUE of static tax analysis?
A. A government cannot change it tax revenues by changing the tax rate.
B. A government receives lower tax revenues by raising the tax rate.
C. A change in the tax rate can raise or lower tax revenues, depending on other factors.
D. A government receives higher tax revenues by raising the tax rate.
Answer: D
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People over the age 16 with full-time jobs are considered to be
A) in the labor force and employed. B) unemployed. C) in the labor force unemployed. D) in the working-age population only because they have full-time jobs. E) not in the labor force.
A backward-bending labor supply curve implies that
A) the substitution effect dominates the income effect at higher wage rates but not at lower wage rates. B) the substitution effect dominates the income effect at lower wage rates but not at higher wage rates. C) leisure is an inferior good. D) workers are irrational.
If demand price elasticity measures 2, this implies that consumers would
a. buy twice as much of the product if the price drops 10 percent. b. require a 2 percent drop in price to increase their purchases by 1 percent. c. buy 2 percent more of the product in response to a 1 percent drop in price. d. require at least a $2 increase in price before showing any response to the price increase. e. buy twice as much of the product if the price drops 1 percent.
Video rental stores in cities are an illustration of:
a. perfect competition. b. monopolistic competition. c. monopoly. d. oligopoly.