Which of the following would likely have the smallest deadweight loss relative to the tax revenue?
a. a head tax (that is, a tax everyone must pay regardless of what one does or buys)
b. an income tax
c. a tax on compact discs
d. a tax on caviar
a
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Features of the U.S. federal government expenditure and taxation programs that tend to automatically slow the economy during times of high economic activity and boost the economy during periods of recession are called:
A) discretionary expenditures. B) automatic stabilizers. C) non-automatic stabilizers. D) none of the above.
In the U.S., the largest share of national income is earned in the form of
a. taxes on production. b. wages and salary. c. interest earned on capital. d. corporate profits.
A possible budget reform involves: a. a quadrennial budget
b. breaking down the budget into increasingly small budget lines. c. appointing agency heads with different priorities than those of elected representatives. d. to simplify the budget document by concentrating only on major groupings and eliminating line items. e. to eliminate the operating budget.
The median voter must have preferences that reflect those of all people in the community.
A. True B. False C. Uncertain