According to dynamic tax analysis, will continuing to push up the tax lead to steady increases in tax revenues? Why?
What will be an ideal response?
In dynamic tax analysis, the tax base will eventually decline for ever-higher tax rates. This means that tax revenues will eventually fall at sufficiently high tax rates.
You might also like to view...
The factor market can best be described as where
A) households buy goods and services. B) firms buy goods and services. C) firms buy the services of labor, land and capital. D) governments sell goods and services.
Prices direct economic activity in a market economy by
a. influencing the actions of buyers and sellers. b. reducing scarcity of the goods and services produced. c. eliminating the need for government intervention. d. allocating goods and services in the most equitable way.
Which of the following constitutes a barrier limiting the entry of potential competitors into a market?
a. diseconomies of scale b. an elastic market demand for the product produced by the industry c. control over an essential resource d. a perfectly elastic demand curve
Suppose your donut shop earns $25,000 in total revenues per month with explicit costs of $15,000 and opportunity costs of $8,000. Your accounting profit is
A. $2,000. B. zero. C. $48,000. D. $10,000.