The Coase theorem reminds us that efficiency is all about ____________________ and says nothing about ______________________.
A. maximizing total surplus; the distribution of that surplus
B. equitably distributing surplus; maximizing that surplus
C. who gets the most surplus; whether that's a fair outcome
D. None of these statements is true.
A. maximizing total surplus; the distribution of that surplus
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There is a difference between who is legally required to send a tax payment to the government and who bears the burden of the tax. Which of the following would have the most impact on who bears the burden of an excise tax?
A) The elasticity of demand for the item that is taxed. B) whether the tax is based on the ability-to-pay principle or the benefits-received principle C) whether the tax is imposed by the federal government or a state government D) The motive for the tax. If the tax is designed to raise revenue, more of the burden will fall on firms. If the tax is designed to achieve a social objective (for example, to discourage smoking) more of the burden will fall on consumers.
Deflation refers to a:
a. decreasing relative prices. b. decreasing price level. c. slowing down of the rate of inflation. d. federal government policy of running budget surpluses.
If national real GDP grows at twice the rate of population growth,
A. real per capita GDP growth will double each year. B. eventually there will be too much GDP. C. real per capita GDP will double each year. D. real per capita GDP will be reduced by half each year.
Examine regulatory capture in the railroad industry
Please provide the best answer for the statement.