Ignoring taxes when making redistributive decisions has no impact on equity.
A. True
B. False
C. Uncertain
A. True
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When a tax is imposed on sellers of a good, the resulting rise in the equilibrium price is usually less than the amount of the tax itself. Why doesn't the equilibrium price rise by the full amount of the tax?
What will be an ideal response?
Which type of business has the least government rules and regulations affecting it?
A) partnership B) corporation C) sole proprietorship D) They all have the same set of rules and regulations affecting them.
Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur?
A) Gretchen's real wage will be unchanged. B) Gretchen's real wage may rise or fall, depending on the unemployment rate. C) Gretchen's real wage will fall. D) Gretchen's real wage will rise.
Moving along the supply curve for labor, increases in the quantity of labor result from ________
A) diminishing returns to labor effort B) a rising cost of leisure C) a reduced preference for leisure D) more efficient recruitment of workers