A theory of taxation that states that citizens should bear tax burdens in line with their ability to pay taxes is the
A. benefits-received principle.
B. equal payment principle.
C. ability-to-pay principle.
D. equity principle.
Answer: C
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Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q380g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />To Mexico, the payoff to cheating is either:
A. $80 million or $110 million.
B. $150 million or $200 million.
C. $100 million or $110 million.
D. $60 million or $100 million.
The government should provide one more unit of a public good if ________
A) the marginal benefits equal the marginal costs of providing the additional unit B) the marginal cost of providing the next unit exceeds the marginal benefits C) the marginal benefits exceed the marginal costs of providing the next unit D) the marginal costs of providing the next unit equal the average cost of providing the next unit
If the Palace Cinema can sell 200 tickets at $4 and 300 tickets at $3, our best estimate of the marginal revenue from sale of the 250th ticket is
A) $4. B) $3.50. C) $3. D) $1.
The deadweight loss from a tax is the reduction in producer and consumer surplus minus the tax revenue transferred to the government
a. True b. False Indicate whether the statement is true or false