A local government currently has a tax base of $10 million and a tax rate of 10 percent. If the tax rate is increased to 12 percent, the tax base becomes $8.5 million. If the goal is to maximize tax revenues the tax rate should be
A) raised above 12 percent.
B) kept at 10 percent.
C) raised to 12 percent.
D) abolished.
Answer: C
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A) an absolute; shoes B) a comparative; shoes C) an absolute; bookshelves D) a comparative; bookshelves
From 1860 to 1910, international net capital flow into the U.S
(a) was positive when the U.S. economy expanded. (b) was neutral and not influenced by the U.S. business cycle. (c) was negative when the U.S. economy grew. (d) was positively impacted by U.S. discussions about and actual restrictions on immigration.
Suppose there are 50 million persons in the population, 25 million persons in the civilian labor force, and 20 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent
A) 25; 50 B) 5; 10 C) 5; 20 D) 10; 10
In a noncompetitive labor market, the firm pays a wage that is less than the workers' value of marginal product because
A. the marginal cost of labor curve is above the labor supply curve. B. the firm's labor demand curve is downward sloping. C. the labor supply curve is above the marginal cost of labor curve. D. labor is supplied inelastically. E. the firm's objective is to minimize the wage rather than to maximize profits.