Tax distortions happen because tax laws take into consideration only:

A. nominal income.
B. nominal output.
C. real income.
D. real output.


Answer: A

Economics

You might also like to view...

If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the

a. consumer has consumer surplus of $2 if he or she buys the good. b. consumer does not purchase the good. c. market is not a competitive market. d. price of the good will fall due to market forces.

Economics

"New industries need to be protected or they won't have the opportunity to grow up." This is a statement of the __________ argument for trade restrictions

A) national-defense B) infant-industry C) anti-dumping D) tariff E) none of the above

Economics

Use the figure below to calculate the cross-price elasticity of demand for good X when the price of good Y increases from $12 to $14:

A. 0.64 B. 0.20 C. 15.38 D. 0.42 E. 2.00

Economics

The Cournot model assumes that the firms take their competitors output as fixed.

Answer the following statement true (T) or false (F)

Economics