What are the basic differences between public choice theory and the economics of taxation?
Please provide the best answer for the statement.
Public choice theory offers generalizations that describe how the public sector makes decisions about the use of economic resources. Topics of study include voting behavior, special interest and “rent-seeking,” and decision-making in government bureaucracies. The economics of taxation analyzes public expenditures and tax revenues. It examines the principles of taxation and the economic effects of specific taxes.
You might also like to view...
Some economists argue that the productivity slowdown of the mid-1970s to the mid-1990s was due to changes in oil prices that
A) increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. B) decreased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. C) increased production costs, causing firms to reorganize production to conserve energy, which increased output per worker. D) decreased production costs, causing firms to increase production, which reduced output per worker.
Since interest rates for borrowing are usually higher than interest rates for savings, the intertemporal budget constraint has an inward kink for individuals that earn income now and in the future.
Answer the following statement true (T) or false (F)
Refer to Figure 11.2. Assume the economy is in equilibrium at 1, where real GDP equals potential GDP, and then the economy experiences a positive demand shock. Other things equal, the positive demand shock is best represented by a(n)
A) movement up along the Phillips curve. B) movement down along the Phillips curve. C) upward shift of the Phillips curve. D) downward shift of the Phillips curve.
As real disposable income increases, consumption expenditures
A) increase by the same amount. B) increase by a smaller amount. C) increase by a larger amount. D) remain constant.