An excess burden is present when taxpayers alter their behavior on account of taxation.
Answer the following statement true (T) or false (F)
True
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The United States is academically unique in having so many
a. trade schools. b. colleges of arts and sciences. c. business schools. d. fine arts schools.
The money supply schedule is
A) horizontal because is set by the central bank while P is taken as given. B) horizontal because is set by the central bank. C) vertical because is set by the households and firms while P is taken as given. D) vertical because and P are set by the central bank. E) vertical because is set by the central bank while P is taken as given.
You are responsible for purchasing 25 used cars for your company. Star Brand cars costs $7,500 and Diamond Brand cars cost $6,000. Based on experience, you believe that 20% of Star Brand cars are lemons (low quality) while 40% of Diamond Brand cars are lemons (low quality). You are willing to pay $5,000 for a known lemon and $12,000 for a known plum. Which brand do you purchase?
A. Star B. Diamond C. You are indifferent between brands. D. You don't buy either brand.
In the process of reducing pollutants in our environment, we are
A) achieving a cleaner environment at no real cost. B) causing higher levels of unemployment. C) reallocating resources in an inefficient manner. D) trading off less of other goods and services for a cleaner environment.