A unique characteristic of taxes on economic rents is that such taxes:
A. stimulate aggregate production.
B. do not lead to a reallocation of the resource.
C. are paid by consumers.
D. are always regressive.
Answer: B
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If U.S. interest rates are rise relative to foreign interest rates, in the foreign exchange market the demand for U.S. dollars will decrease
Indicate whether the statement is true or false
Since 1900, real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time
A) increased; overstates B) decreased; understates C) increased; understates D) decreased; overstates
What leads to chronic deficits on U.S. current account?
a. declining value of the dollar and uncertainty about its future b. devaluation of the dollar c. imports being greater than exports year after year d. foreigners buying up U.S. assets in the U.S. year after year e. more exports and fewer imports year after year
If the government charged a tax on monopolists equal to, say, 75 percent of their economic profits, what would happen to the level of output the firm would produce? What about the price? Explain.
What will be an ideal response?