How does the Tax Foundation predict tariffs will affect unemployment, income and economic growth?
What will be an ideal response?
Ans: Tax foundation is a think tank started by a group of businessmen to collect and analyze data on government taxations and government spending to help predict the effects of the policy options.
It helps in analyzing what the welfare effects of taxes and government spending have been and can be and help government in adequate policy making.
In case of tariffs, the tax foundation helps in analyzing the effects of tariffs before implementing, using the already collected data on the country’s demographics. It conducts research and analysis to find out how the tariffs would affect the economy by affecting income, unemployment rates and thus economic growth.
The tax foundation has clearly been against high tax rates and have presented data on many occasions to resist implementation of high tax rates in different states or commodities.
Thus, by collecting and analyzing data on past and current taxes, the Tax Foundation predicts how tariffs will affect unemployment, income and economic growth.
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If the federal government has a budget surplus, then it is definitely the case that
A) tax revenue exceeds government outlays. B) tax revenue and government outlays are equal. C) the tax revenue is falling and government outlays are rising. D) government outlays exceed tax revenue. E) the tax revenue is rising and government outlays are falling.
A decreased demand for U.S. dollars on the foreign exchange market, all else equal, will result in a depreciation of the U.S. dollar
Indicate whether the statement is true or false
According to the graph shown, if this economy were open to free trade, domestic consumers would consume how many units?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 45
B. 85
C. 120
D. 75
How is scarcity related to competition?
A) Competition is an effect of scarcity. B) Scarcity is an effect of competition. C) Both scarcity and competition are effects of a rationing device. D) Both scarcity and competition are effects of opportunity cost. E) Scarcity produces disutility and competition produces utility.