Identify two kinds of circumstances which may favor nonneutral taxes
What will be an ideal response?
The two kinds of circumstances in which nonneutral taxes may be justified would be either the presence of externalities or the presence of other taxes.
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Joseph starts driving with much less care after buying car insurance. His behavior is an example of ________
A) moral hazard B) a domino effect C) adverse selection D) herd behavior
A characteristic of a public good is
A) rival consumption. B) the exclusion principle. C) the free-rider problem. D) clear property rights.
Which of the following is associated with a more elastic demand curve?
a. availability of many close substitutes b. a greater amount of time for consumers to respond to a price change c. a large percentage of income spent on the good in question d. all of the above
The rule of reason was an antitrust law guideline that emphasized the importance of ________ over ________
a. price; quantity b. quantity; price c. law; the economy d. size; behavior e. behavior; size