A tax wedge is ________
A) the difference between the tax rate on income and capital gains
B) equal to the difference between what people earn before and after taxes are accounted for
C) the size of the decrease in labor force participation when labor income is taxed
D) the difference between the rate on Treasury securities and the income tax rate
B
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Summarize the history of how the Federal Reserve came to have twelve districts
If a country has a current account deficit, which of the following must be true?
(a) It must also show a deficit in its capital account (b) It must show a surplus in its capital account (c) It must increase the purchases of foreign goods and services (d) It must increase the domestic interest rates of its bonds (e) It must limit the flow of foreign capital investment
Which of the following sets of outcomes is exhaustive?
A) win, lose, tie B) employed full-time, employed part-time, unemployed C) married, single, widowed D) All of the above.
If a $15 billion reduction in taxation produces a change of $20 billion in output, the value of the government taxation multiplier is ________
A) 35 B) 0.75 C) 5 D) 1.3