The deadweight loss of a tax
A) is the transfer of income from households to the government.
B) determines the incidence of a tax.
C) is part of the total burden of a tax.
D) is greater than the total burden of a tax.
E) equals the tax revenue collected by the government.
C
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Raising funds through financial intermediaries is called
A) indirect finance. B) dividend reinvestment. C) direct finance. D) corporate finance.
The more willing monetary policymakers are to raise interest rates when faced with inflation, the ________ the AD curve is, and the ________ responsive equilibrium output is to the inflation rate
A) steeper; more B) steeper; less C) flatter; more D) flatter; less
A monopolist engages in price discrimination
A) by charging a higher price to consumers whose demand is more inelastic. B) by charging a lower price when marginal cost is higher. C) by charging a lower price to consumers whose demand is more inelastic. D) by charging the same price to all consumers.
The value of the Swiss franc relative to the dollar would decrease if the demand for dollars increases and the supply of Swiss francs
A. remains unchanged. B. increases. C. decreases. D. all of the above are correct