How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government in order to bail out a specific industry?
(a) One dollar
(b) Less than one dollar because the administration of and compliance with the tax
laws creates jobs for people
(c) Less than a dollar because of the excess burden resulting from the elimination of
productive exchanges by the taxes
(d) More than a dollar because collection of the taxes requires resources that would otherwise
be available for private sector production
(a)
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In 2013 banks kept reserves equal to about ________ of their assets
A) 37 percent B) 50 percent C) 75 percent D) 25 percent E) 18 percent
The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 200 billion kilowatt hours are produced is
A) 0¢ per kilowatt. B) 10¢ per kilowatt. C) 20¢ per kilowatt. D) 15¢ per kilowatt. E) 5¢ per kilowatt.
If government purchases increase and net taxes decrease, _____
a. the price level will fall b. money supply must rise c. the aggregate demand curve shifts leftward d. aggregate supply shifts rightward e. output and employment will increase
Which of the following is the best example of an investment in human capital?
a. the purchase of an industrial development bond b. a graduate student who completed 24 semester units in economics last year c. the purchase of a lawn mower by a homeowner d. an unemployed stockbroker who drives a cab in order to pay his bills