Many environmentalists have advocated a substantial increase in the gasoline tax to cut down the federal deficit and to reduce pollution due to auto emissions. Such a tax increase would be devastating to people who commute significant distances to work. In fact, it would provide an incentive to relocate closer to work or change jobs. Economists refer to such effects of taxes as the
A. burden of a tax.
B. regressive incidence of a tax.
C. incidence of a tax.
D. excess burden of a tax.
Answer: D
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Suppose the lack of agricultural land is a key reason for the slow economic growth of Lithasia. This argument claims that:
A) geography is the fundamental cause of slow economic growth in Lithasia. B) stock of physical capital is a fundamental cause of slow economic growth in Lithasia. C) stock of human capital is a proximate cause for slow economic growth in Lithasia. D) geography is a proximate cause of slow economic growth in Lithasia.
A payment that is periodically adjusted in proportion to a price index such as the CPI is known as a(n)
a. unionized payment. b. indexed payment. c. scaled payment. d. inflated payment. e. adjusted payment.
Which of these contributes to the existence of monopoly power?
a. a continuously decreasing long-run average cost curve b. possession of a patent c. control over essential output d. All of the above are correct.
The two federal agencies responsible for bringing suit against anticompetitive mergers are the ___________ and the ___________.
Fill in the blank(s) with the appropriate word(s).