A situation in which the government cannot implement an optimal tax policy because the policy is inconsistent with the government's incentives over time is known
A. government tax problem.
B. time inconsistency of optimal policy.
C. the double-counting game.
D. Wagner's Law.
B. time inconsistency of optimal policy.
You might also like to view...
Other things being equal, a reduction in taxes will
A) lead to a corresponding reduction in interest rates increasing the crowding out effect. B) influence the short run aggregate supply curve but not the aggregate demand curve. C) cause an increase in aggregate demand due to increases in consumption, investment, or net exports. D) lead to a reduction in the long run aggregate supply curve as businesses enjoy greater profits.
A set of actions that a firm takes to achieve a goal, such as maximizing profits, is called
A) the Porter's Competitive Forces plan. B) game theory. C) a payoff matrix. D) a business strategy.
___________ is a tendency or a disposition to expect the best outcome or to think hopefully about a situation
a. Negativism b. Capitalism c. Optimism d. Accommodation
If the cross price elasticity of demand between Los Angeles Lakers professional basketball tickets and Los Angeles Dodgers professional baseball tickets is positive, then the two goods are
A) substitutes. B) unrelated. C) complements. D) not related.