One advantage of a lump-sum tax over other taxes is that it
a. is both equitable and efficient.
b. doesn't cause deadweight loss.
c. would place a larger tax burden on the rich.
d. would raise more revenues.
b
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For a common resource, the equilibrium with no government intervention is such that ________ is less than ________
A) marginal private cost; marginal social benefit B) marginal social benefit; marginal social cost C) marginal private benefit; marginal social benefit D) total social benefit; total social cost
The use of a property tax to fund public schools is an example of _____
a. the benefit principle at work b. the ability-to-pay principle at work c. a compromise between the benefit and ability-to-pay principles d. the Ramsey rule at work
When the supply of a good decreases, there will be a(n):
A. decrease in the quantity demanded. B. increase in the quantity demanded. C. decrease in buyers' reservation prices for the good. D. decrease in demand.
Which of the following best describes comparative advantage?
A) using the fewest number of resources to produce a given amount of output B) being able to produce more output than any other country C) having the largest number of resources compared to other countries D) forgoing the fewest units of one product to produce a unit of another product E) It is the same as absolute advantage.