The inefficiency of taxation means that
A. imposing a tax on goods reduces prices that buyers pay and decreases supply.
B. imposing a tax on goods typically reduces the amount produced.
C. governments tax only specific industries.
D. taxes are applied more on consumers than businesses.
Answer: B
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A government budget surplus from reduced government spending (no change in net taxes) will ________ the level of investment in the economy and ________ the level of saving (private plus public) in the economy
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
A totally pollution free environment should not be a primary social goal
a. True b. False Indicate whether the statement is true or false
Which of the following would increase the supply of physicians?
a. Making it easier for plaintiffs to prove medical malpractice claims b. Increasing the medical school entrance requirements to include 15 hours of economics c. Increasing the cost of attending medical school d. More scholarships and grants to cover medical school tuition e. Reducing the number of residency programs in some specialties in order to increase the number of family practice residencies
Suppose a policy change generates $200,000 of benefits for low-income families and $175,000 of costs for high-income and middle-class families. We can best describe the change as
A. potentially efficient. B. equitable. C. Pareto efficient. D. inefficient.