The negative effect of a tax on the economic surplus of participants in a market should:
A. be weighed against the potential benefits of the public goods financed by the tax.
B. insure that the tax will never be approved by voters.
C. be enough to convince the government that the tax is a bad idea.
D. be ignored if the government needs to generate tax revenue.
Answer: A
You might also like to view...
Refer to Figure 7.1. Start from initial equilibrium. If the economy experiences increased immigration, the new real wage could be ________ and the new amount of labor employed could be ________
A) X; C B) Y; A C) Z; C D) Z; A
John deposits $800 at an annual interest rate of 6%. The total amount in John's account after one year will be:
A) $822. B) $848. C) $864. D) $950.
A monopoly firm expands its output and lowers its price. The firm finds that its total revenue falls. Hence, the firm is producing in the
A) elastic range of its demand curve. B) inelastic range of its demand curve. C) elastic range of its supply curve. D) inelastic range of its supply curve.
Factors that influenced planned investment spending include
A) real interest rates. B) financial frictions. C) emotional waves of optimism and pessimism. D) all of the above. E) A and C.