The total burden of a tax is $12,000 and the tax revenue from this tax is $8,000. The excess burden of this tax is
A. $4,000.
B. $8,000.
C. $10,000.
D. $20,000.
Answer: A
You might also like to view...
If every individual earned the same total income over his or her lifetime, there would still be observed inequality because: a. people earn more in their youth
b. people earn more in middle age. c. people earn more when they are very old. d. of none of the above.
The factors of production include all of the following EXCEPT:
A.) Money. B.) Land. C.) Labor. D.) Entrepreneurship.
To solve the common pool problem in fishing, governments can __________, or __________
a. impose a depletion tax; prohibit resource use entirely b. impose a depletion tax; restrict output c. introduce an offsetting positive externality; prohibit resource use entirely d. use a variable technology; impose a depletion tax e. restrict output; prohibit resource use entirely
Which of the following is often used by economists to assess income distribution?
a. Affordability Index b. Quintiles c. Consumer Price Index d. Quartiles