Optimal commodity taxation would

A. put a tax on leisure time, which is currently untaxed.
B. have the smallest amount of excess burden possible for a given amount of tax revenue.
C. optimize tax rates on the wealthiest Americans.
D. eliminate tax evasion in the United States.


B. have the smallest amount of excess burden possible for a given amount of tax revenue.

Economics

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If benefit functions for a public good could be identified accurately, incremental benefits would be measured as

a. the area under the MSB function between the pre- and post-policy abatement levels. b. the area under the TSB function between the pre- and post-policy abatement levels. c. a horizontal distance on the MSB model corresponding to the pre- and post-policy abatement levels d. none of the above

Economics

Sharecropping:

a. allowed tenant farmers and land owners to share the risks and benefits of farming. b. gave freed slaves more control over their workday. c. relied on contracts that were usually renegotiated annually. d. created little incentive for long-term investments in improvement of farm land. e. All of the above.

Economics

To enhance social welfare, the government should encourage the production of

a. all goods b. no goods c. goods that provide positive externalities d. goods whose social cost exceeds their private cost e. goods that provide negative externalities

Economics

Your friend Diana tells you that she thinks that her favorite softball team has a 70% chance of winning the next game because that is exactly the winning rate of her team in the last two seasons. This is an example of a(n)

A) objective probability. B) subjective probability. C) risk-averse statement. D) Friedman-Savage preference.

Economics