Suppose you had to design an economic system for a country that had never existed before, like one of the former Soviet Union countries. What criteria would you consider to minimize the excess burden of the system of taxation?
What will be an ideal response?
Reducing excess burden would be critical, but there has to be a great deal of care involved in
ensuring that the tax system is fair. This would be important for a new country that has no institutional history to draw up.
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Repetition of a game
A) yields the same outcome, over and over. B) can result in behavior that is different from what it would be if the game were played only once. C) is not possible. D) makes cooperative games into non-cooperative games. E) is possible only if the payoffs in the matrix change.
Full employment to the classical school means that all workers
a. in the labor market are employed b. at any given wage rate are or will be employed c. who work at the equilibrium wage rate would not have been willing to work for less or more d. who are willing to work at the equilibrium wage rate are employed e. who are in the labor force are employed all the time
Following the stock market crash of 1929 depositors demanded their money back, the Fed failed to act as the lender of last resort by lending banks money to repay depositors, and between 1930 and 1933 about one-third of all banks had failed
Indicate whether the statement is true or false
"Competition is the great regulator." This statement reflects that
What will be an ideal response?