It is usually more efficient to tax a large base at a low rate than to tax a small base at a high rate. ?
Answer the following statement true (T) or false (F)
False
Rationale: Governments will ultimately lose revenue if tax rates get too high.
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According to the Application
A) stable marriages account for no more happiness than marriages ending in divorce. B) reported levels of happiness in the United States have increased over the past 30 years. C) money does appear to buy happiness, ceteris paribus. D) retired people report higher levels of happiness than people below the age of 40.
If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was
A) 7.7 percent. B) 5.4 percent. C) 4.4 percent. D) 5.8 percent.
Positive analysis of economic policy
A) examines the economic consequences of policies but does not address the question of whether those consequences are desirable. B) examines the economic consequences of policies and addresses the question of whether those consequences are desirable. C) generates less agreement among economists than normative analysis. D) is rare in questions of economic policy.
What would happen in an economy if total planned production exceeded total planned real expenditures?
A) Inventories would be depleted, and firms would tend to lower prices. B) Inventories would accumulate, and firms would tend to lower prices. C) Inventories would be depleted, and firms would tend to raise prices. D) Inventories would accumulate, and firms would tend to raise prices.