Assume that the lost output due to tax distortions is proportional to the square of the tax rate. If the average cost of the distortion created by taxes is currently $1000, and the tax rate is increased from 40% to 50%, the average cost of the distortion created by taxes will increase to
A. $450.00.
B. $640.
C. $383.33.
D. $1562.50.
Answer: D
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All of the following are factors that will shift the supply curve except
A) a change in production technology. B) changing tastes and preferences. C) a change in the price of substitutes in production. D) a change in the number of producers.
In 2001, the percent of total employment in the manufacturing, mining, and construction sector equaled
a. less than 20 percent. b. 30 percent. c. 40 percent. d. 60 percent.
In class action lawsuits, interested parties to the lawsuit are not required to pay attorney fees directly. This is an example of an attempt to
a. maximize attorney fees. b. reduce the incentive of attorneys to file class action lawsuits. c. reduce the transaction costs of finding a private solution to an externality. d. regulate attorney fees.
A means tested government program is one that:
A. is pilot tested to see if it works. B. provides assistance to those below a certain income level. C. is temporary and ends after a short period of time. D. All of these