Two of the bizarre taxes mentioned in this chapter's Snapshot were the Flush Tax and the Window Tax. Which of the following statements is true based on the description of these taxes shown here?
A. The deadweight loss is the same for the Flush Tax and the Window Tax.
B. The deadweight loss is greater for the Window Tax.
C. The deadweight loss is greater for the Flush Tax.
D. There is no way to calculate the deadweight loss for both taxes given the information provided.
Ans: D. There is no way to calculate the deadweight loss for both taxes given the information provided.
The descriptions provide no information about the nature of the demand and supply curves in the relevant markets, or the size of these markets. Therefore, it is not possible to determine the magnitude of the deadweight loss caused by these taxes.
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Which statement is true?
A. We have had at least one recession in the 1940s, 1950s, 1960s, 1970s, 1980s, and 1990s. B. We have had at least two recessions in any one decade since World War II. C. We have had at least three recessions in all of the decades since World War II. D. None of the choices are true.
A bank acts as _________________ between buyers and sellers.
A. an intermediary B. a negotiator C. an agent D. an interpersonal communicant
Homeowners
A. are subject to double taxation. B. benefit from several loopholes. C. have no particular advantages in the tax system. D. must pay tax on the “income” of living in a house.
When marginal revenue is positive,
A. marginal revenue is greater than price. B. demand is elastic. C. decreasing price will decrease total revenue. D. both b and c E. all of the above