Static tax analysis assumes that
A) an increase in a tax rate may lead to a decrease in the tax base.
B) an increase in a tax rate will lead to an increase in the tax base.
C) an increase in a tax rate will leave the tax base unchanged.
D) the tax base will always remain unchanged.
Answer: C
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Each of the following would decrease the demand for U.S. dollars, shifting the demand curve for dollars to the left, except:
A. a decrease in real GDP abroad. B. a decreased preference for U.S.-made goods. C. a decrease in the real interest rate on U.S. assets. D. a depreciation of foreign currencies relative to the U.S. dollar.
Lolita wants to purchase a rather bland-looking shopping center built in the 1970s, tear it down, and construct an architecturally-stimulating office building that will confer $750,000 of benefits to society. In its current state, the shopping center is worth $900,000. Lolita goes to the city council with her proposal and tells the council members that the new office building will beautify the city and increase property-tax revenues. If the city council agrees to use eminent domain to allow Lolita to proceed with her project, society as a whole will
A) be made richer since property-tax revenues will increase. B) be made richer since the area will be more aesthetically beautiful. C) be made poorer since the project confers benefits that are lower than the current value of the shopping center. D) not be affected since the project only encompasses one small parcel of land.
Technically speaking, if price > AVC, then
a. TR > TC b. profit is positive c. TR > TVC d. profit is negative e. the firm should shut down
Long-term solutions to communitywide poverty must involve:
A. increasing the value of the currency. B. ways to expand the range opportunities available to the population. C. ways to reduce taxes collected by local governments. D. All of these are true.