A comprehensive retail sales tax is equivalent to a tax on income when _____
a. there is no deadweight loss from taxation
b. there is at least some investment in the economy
c. there is zero saving in the economy
d. the economy is at full employment
c
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Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market
a. True b. False Indicate whether the statement is true or false
When using the traditional command-and-control approach to environmental regulation, the government attempts to:
A. set a minimum requirement and then allows the firm to determine the most efficient method for achieving this requirement. B. determine the most efficient method for different industries. C. make allowances for differences across industries and between firms. D. set standards that are applicable to all situations and does not recognize unique circumstances.
Refer to Scenario 19.4 below to answer the question(s) that follow. SCENARIO 19.4: Suppose demand for widgets is given by the equation P = 10 - 0.25Q. Originally, the price of the good is $5 per unit. When a tax of $1 per unit is imposed, the price of the good rises to $6 per unit.Refer to Scenario 19.4. Prior to the imposition of the tax consumer surplus was ________ and after the tax was imposed consumer surplus was ________.
A. $50; $32 B. $32; $50 C. $100; $65 D. $25; $16
The factor accounting for the largest increase in the productivity of labor in the United States has been:
A. The education and training of workers B. Improved resource allocation C. The quantity of capital D. Technological advance