How is tax incidence important in tax policy in developing countries?
What will be an ideal response?
Incidence is the extent to which the burden of a tax is born by the activity taxed. To the extent that substitution is possible, an activity will be abandoned when taxed, and revenue will not be collected. The answer should provide examples of this.
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Negative inflation rates benefit lenders because
A. the real interest rate is negative. B. the nominal interest rate is negative. C. the nominal interest rate is positive. D. the real interest rate is positive.
Newland's net exports for a certain year equal -$2.2 billion, net factor payments from abroad equal $1.3 billion, and net transfers from abroad equal $0.5 billion. What will be the balance in Newland's financial account for the year?
What will be an ideal response?
What is the function of the system of federal regulation created by Congress from 1887 until now?
(a) To change the outcomes of market decisions (b) To enforce the outcomes of market decisions (c) To replace market allocations with economic planning (d) To enforce the law
If the price elasticity of demand for shelled, roasted, unsalted peanuts is 0.86 at current prices, a small increase in price will raise producers' total revenue
Indicate whether the statement is true or false