The efficiency loss of a tax is:
A. the net value of sacrificed output caused by the tax.
B. that portion of the tax paid by producers minus the portion paid by consumers.
C. that portion of the tax paid by consumers minus the portion paid by producers.
D. the total tax revenue minus the output loss caused by the tax.
Answer: A
You might also like to view...
Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Dirty Inc. ($/day) $110$200$380$740$1,460 Cost to Filthy Inc. ($/day) $400$430$490$580 $700Suppose pollution is initially unregulated. If the City Council imposes a tax of $91 per day on each ton of smoke emitted, then total emissions will fall to ________ tons of smoke per day.
A. 1 B. 4 C. 2 D. 8
The distribution of income in the United States is
a. more concentrated than the distribution of income in other developed countries throughout the world b. significantly more even than the distribution of income in other developed countries throughout the world c. quite similar to the distribution of income in other developed countries throughout the world d. significantly less even than the distribution of income in most developing countries e. quite similar to the distribution of income in most developing countries
By purchasing shares in a mutual fund that holds a portfolio of stocks, a person can
a. benefit from fundamental analysis, since the mutual fund requires its shareholders to perform fundamental analysis on their own. b. benefit from fundamental analysis, since the mutual fund hires one or more individuals to perform fundamental analysis for the fund. c. eliminate market risk. d. reduce the standard deviation of his or her portfolio to zero.
In a simultaneous equations model, if any variable is determined outside of the model, then it is considered a(n):?
A. ?endogenous variable. B. ?random variable. C. ?exogenous variable. D. ?error variable.