Which of the following are arguments against taxing unrealized capital gains?
a. A person might have to sell an asset in order to pay the tax on it.
b. It might be difficult to determine the increase in valuation.
c. It increases the incentive to hold onto appreciated assets.
d. a and b
e. b and c
d
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How are total and marginal utility related?
What will be an ideal response?
Suppose that Steve and Susie each perceive $200 of marginal benefit from a proposed new park, whereas Elizabeth perceives $800. If the proposed tax levied on each for the park would be $300, a majority vote will:
a. defeat this project and resources will be underallocated to it. b. defeat this project and resources will be efficiently allocated. c. pass this project and resources will be underallocated to it. d. pass this project and resources will be overallocated to it.
Refer to Figure 4-20. The figure above represents demand and supply in the market for gasoline. Use the diagram to answer the following questions
a. How much is the government tax on each gallon of gasoline? b. What portion of the per-unit tax is paid by consumers? c. What portion of the per-unit tax is paid by producers? d. What is the quantity sold after the imposition of the tax? e. What is the after-tax revenue per gallon received by producers? f. What is the total tax revenue collected by the government? g. What is the value of the excess burden of the tax? h. Is this gasoline tax efficient?
One of the reasons communism failed was because:
a. governments ran out of money. b. workers received the same pay whether or not they worked hard. c. there was no unemployment. d. Mao Zedong passed away. e. technological improvements were impossible in a communist economy.