Taxpayers would be better off if a tax could just raise revenue without ______
a. altering the relative prices they face
b. altering their preferences for a good
c. tax shifting
d. any income effects
a
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Which of the following is an example of a price floor?
A) a law passed in a city to lower apartment rents by setting the maximum price that can be charged for rent B) an equilibrium price C) a minimum wage law D) a law setting the highest price that can legally be charged for a gallon of gasoline. E) None of the above answers give examples of a price floor.
The "law of demand" predicts that, other things being equal
A) an increase in the price of downloaded music decreases the demand for downloaded music. B) a decrease in the price of gasoline decreases the quantity of gasoline demanded. C) an increase in the price of pizza decreases the quantity of pizza demanded. D) an increase in the price of coffee decreases the quantity of tea demanded.
When a firm's competitors cut their prices when the firm does, but do not raise their prices when the firm does, the result is that the firm has a kinked demand curve
Indicate whether the statement is true or false
Suppose an airline ticket from Portland to Orlando costs $760 . A bus ticket costs $360 . Traveling by plane will take 6 hours, compared with 26 hours by bus. Other things constant, the minimum value of one's time that would induce a rational individual to fly rather than drive would be
a. $18 per hour. b. $20 per hour. c. $38 per hour. d. $44 per hour.