An efficient tax is one that raises the desired tax revenue but creates the least possible
a. total burden.
b. excess burden.
c. tax incidence.
d. tax shifting.
b
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Assume that the characteristic function of a coalition between three individuals named 1,2, and 3 is V(1,2,3) = $60; while V(1) = $20, V(2) = $16, and V(3) = $10, where V(i) is the value created by individual i. Which of the following allocations will lie within the core?
a. Payoffs to individuals 1,2, and 3 are $19, $35, and $6 respectively. b. Payoffs to individuals 1,2, and 3 are $30, $18, and $12 respectively. c. Payoffs to individuals 1,2, and 3 are $32, $20, and $8 respectively. d. Payoffs to individuals 1,2, and 3 are $28, $15, and $17 respectively.
When property rights are clearly defined and enforced, private owners will
a. use their property for selfish ends because they have little or no incentive to consider the desires of others. b. develop and direct their property toward uses that others value highly because the market will generally reward them for doing so. c. have little or no incentive to take care of their property or conserve it for the future. d. be unable to derive personal gain if they are sensitive to the desires of others when deciding how to use their property.
Which of the following best describes a production function?
a. The relationship between the quantity of labor employed and total cost. b. The relationship between consumer preferences and market demand. c. The relationship between price and quantity supplied by sellers in a market. d. The relationship between the amount of resources employed and the total output produced by a firm.
For almost all goods, the:
A. higher the price goes, the higher the quantity demanded. B. lower the price goes, the higher demand is. C. higher the price goes, the more luxurious it is. D. lower the price goes, the higher the quantity demanded.