Answer the following statement true (T) or false (F)
1) The efficiency loss of a tax is the tax revenue collected by government minus the value of the
public goods financed through the tax.
2) The greater the elasticity of demand and supply, the greater is the efficiency loss of a tax.
3) Economists agree that corporations always shift the corporate income tax to consumers by
raising product prices.
4) Although state and local taxes are highly progressive, federal taxation is predominantly
1) F
2) T
3) F
4) F
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Figure 19-2
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Of the graphs in Figure 19-2, which one shows Japan practicing “dirty” floating to keep an undervalued currency?
A. 1 B. 2 C. 3 D. 4
Which of the following would be included in the calculation of Gross Domestic Product (GDP)?
A. the value of spending on a truck B. the value of the sale of 200 shares of Alphabet stock C. the value of transfer payments D. the value of the sale of a used guitar
As a percentage of GDP, U.S. imports have been ________ and U.S. imports have been ________ since 1950
A) growing; declining B) declining; growing C) growing; growing D) declining; declining
In the long run, all firms in a perfectly competitive industry
A) earn economic profits. B) break even. C) suffer economic losses. D) sell differentiated products to earn economic profits.