Many environmentalists have advocated a substantial increase in the gasoline tax to cut down the federal deficit and to reduce pollution due to auto emissions. Such a tax increase would be devastating to people who commute significant distances to work. In fact, it would provide an incentive to relocate closer to work or change jobs. Economists refer to such effects of taxes as the
a. burden of a tax.
b. regressive incidence of a tax.
c. incidence of a tax.
d. excess burden of a tax.
d
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The burden of debt is borne by future generations.
A. True B. False C. Uncertain
In the simple Keynesian model, equilibrium aggregate output is determined by
A) aggregate demand. B) aggregate supply. C) the national demand for labor. D) the price level.
Using the data in the above table, and assuming constant opportunity costs, it is likely that
A) the United States will import food. B) Mexico will export cloth. C) the United States will export both cloth and food. D) Mexico will export both cloth and food.
One cause of income inequality in the United States is:
A. the free public school system. B. differences in preferences for market work relative to nonmarket activities as well as differences in preferences for types of work. C. antidiscrimination laws. D. a system of taxes and government transfers that redistributes income away from the lowest earners.