The tax wedge is the difference between the
A) amount of taxes needed to pay off the national debt and the actual amount of taxes.
B) nominal and real interest rates.
C) pretax and posttax returns to an economic activity.
D) amount of taxes needed to balance the federal budget and the actual amount of taxes.
C
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Refer to Figure 9-5. As a result of the tariff, domestic producers increase their quantity supplied by
A) 6 million pounds of coffee. B) 18 million pounds of coffee. C) 26 million pounds or coffee. D) 38 million pounds of coffee.
Because inflation in Germany after World War I sometimes exceeded 1,000 % per month, one can conclude that the German economy suffered from
A) deflation. B) disinflation. C) hyperinflation. D) superdeflation.
Full employment, which is always expected to occur, consists of the frictionally and cyclically unemployed
a. True b. False Indicate whether the statement is true or false
Which of the following will tend to occur if price controls are imposed on a product?
a. persistent shortages b. illegal markets c. illicit channels of distribution d. industry investment slows or stops e. All of the above are correct.