List four costs of taxation (above the tax itself) and provide a description of each
What will be an ideal response?
One cost of taxation is the welfare cost of taxation, which occurs because individuals take actions to avoid a tax. Another cost of taxation is compliance costs of taxation, such as the time and effort filling out tax forms or keeping records for tax keeping purposes. A third cost of taxation is administrative costs, which are the costs borne by the government to collect taxes, such as the cost of operating the Internal Revenue Service. A fourth cost of taxation is the political costs of taxation. The political costs of taxation incur when taxpayers attempt to influence tax laws by hiring lobbyists, writing their legislators, etc.
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Which of the following is the Fed's monetary policy instrument?
A) the demand for reserves B) the supply of reserves C) the federal funds rate D) the core inflation rate E) the output gap
Anthony's Accountants is the only employer of accountants in the island of Fairisle. The table gives the demand and supply of accountants on Fairisle. The marginal cost of hiring a sixth accountant is ________ an hour
A) $20 B) $15 C) $25 D) $45
A new cattle feed has been found to increase the amount of milk each cow produces. Which of these is a likely impact in the market for milk, if this cattle feed is used by most of the dairies?
a. A rightward shift of the supply curve for milk b. An increase in the demand for milk c. A decrease in the quantity demanded of milk d. A leftward shift of the supply curve for milk e. An increase in the price of milk
When accounting profits are negative, economic profits could be:
A. positive. B. negative. C. zero. D. All of these are possible.