Is it possible to design a tax that does all of the following: i) leaves behavior unchanged so that the quantity demanded of goods and services does not change, ii) creates no excess burden, iii) is not regressive, and iv) is welfare enhancing?
What will be an ideal response?
No. Currently, it would be difficult to design a tax system that can do all of these things.
Although, economists are trying every day to get closer.
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The population of individuals at least 16 years of age can be broken into 3 groups. They are
A) the unemployed, discouraged workers, and retirees. B) those employed full-time, those employed only part-time, and the unemployed. C) those working in the for-profit sector, those working in the nonprofit sector, and individuals who are unemployed. D) none of the above.
Externalities can be positive, as well as negative.
A. True B. False C. Uncertain
A country that typically runs a trade deficit is:
A. Japan. B. Germany. C. the United States. D. China.
The demand curve in monopolistic competition slopes downward because of:
A. strong barriers to entry. B. product differentiation. C. the small number of firms. D. government regulation.