If a tax generates a reduction in surplus that is exactly offset by the tax revenue collected by the government, the tax does not have a deadweight loss
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
One desirable outcome of a market economy is that it leads to a more equitable distribution of income
Indicate whether the statement is true or false
Prior to 1980, the Fed set an interest rate ________, a maximum limit, on the interest rate that could be paid on time deposits
A) floor B) ceiling C) wall D) window
If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's producers end up
A) receiving a higher price for the good than they otherwise would. B) receiving a lower price for the good than they otherwise would. C) producing less of the good than they otherwise would. D) receiving a lower profit for the domestic good than they otherwise would.
Since 1946 the U.S. economy has been marked by
A. A 32% macro failure rate. B. A 46% macro failure rate. C. Less stability due to the discretionary policies of the government. D. Greater stability due to a hands-off policy by the government.