Which of the following statements is true?
A. Economists believe that neither marginal nor average tax rates have any influence on behavior.
B. Economists believe that marginal tax rates have a greater influence on behavior than average tax rates.
C. Economists believe that average tax rates have a greater influence on behavior than marginal tax rates.
D. Economists believe that marginal and average tax rates influence behavior to the same extent.
Answer: B
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When economists say that policy A is more efficient than policy B, they mean policy A is better than policy B.
Answer the following statement true (T) or false (F)
Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the price of good A increases, the new equilibrium is most likely to be
A) point d. B) point e. C) point f. D) point h. E) point b.
YearFootballs(in millions)P FootballsBooks(in millions)P BooksNominal GDPReal GDP2000 Base Yr55464949200165465454200276577765200347788462Assume the table has recorded the total output and prices of the only two goods produced. Looking at the figures in the table and using them to construct the GDP deflator, we can note the GDP deflator in 2003 was:
A. 109 B. 105 C. 74 D. 135
How do insurance companies try to reduce: 1) the moral hazard problem; 2) the adverse selection problem?