U.S. taxpayers spend many hours during the year maintaining records for tax purposes and preparing their income tax returns. This administrative cost
A) is part of the deadweight loss of taxation.
B) is larger for individuals in the lowest income quintile than for individuals in the highest income quintile.
C) is equal to the value of consumer surplus associated with the income tax system.
D) can be claimed as a deduction on income tax returns.
A
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Which of the following is true about outsourcing and labor migration:
A. Unrestricted out-sourcing and unrestricted labor migration result in the same wage outcomes in tradable goods markets (as long as there are no barriers to trade). B. Under outsourcing, pressures for wage equalization arise from shifts in labor demand curves. C. Under labor migration, pressures for wage equalization arise from shifts in labor supply curves. D. Both (a) and (c) E. Both (b) and (c) F. Both (a) and (b) G. All of the above H. None of the above
If people attempt to sell bonds because of excess money demand, then the interest rate will:
a. rise. b. fall. c. remain unchanged d. react unpredictably.
If there is a negative externality involved in producing good X, then
A. engaging in international trade will solve the inefficiency. B. a subsidy to the producer of good X can correct the inefficiency involved. C. the production possibility curve will be too steeply sloped toward good X. D. None of these is true.
Economic analysis is used
A. only by instructors and students in economics to understand the world. B. only by policy makers to make policy decisions. C. only by business people to raise profits. D. in decision making.