The tax revenue that is generated by a government tax is counted towards total welfare
What will be an ideal response?
True. The tax will benefit either producers or consumers or both, but will also generate a dead weight loss in total welfare.
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The substitution effect of a price change for product X is the change in consumption of X associated with a change in
A) the price of X, with the level of utility held constant. B) the price of X, with the level of real income not considered. C) the price of X, with the prices of other goods changing by the same percentage as that for product X. D) income, with prices of other goods held constant.
In the short run, a perfectly competitive firm's most profitable level of output is where:
a. total revenue minus total cost is at a maximum. b. marginal cost equals marginal revenue. c. Both of the above. d. Neither of the above.
Which of the following is not likely to result from an increase in the federal minimum wage?
a. an increase in the quantity of low-skill labor supplied b. a decrease in the quantity of low-skill labor demanded c. a decrease in teenage unemployment d. an increase in teenage unemployment
During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in: a. gold
b. real estate. c. currency. d. stocks.