The problem of a complex tax code filled with loopholes may be overcome by proposing a complete overhaul of the entire system that lowers taxes for everyone because it _____
a. represents a Pareto superior move
b. takes advantage of rational ignorance
c. benefits all special interests
d. a and b
a
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Fears that the Munn v Illinois (1877) doctrine would result in excessive government control over businesses were not realized, for it actually had the effect of retarding government regulation
Indicate whether the statement is true or false
A futures contract hedges against the risks associated with the volatility of spot price
Indicate whether the statement is true or false
Describe the difference between positive and normative economics. Cite an example of each
We refer to the whole class of goods that firms will ________ in a completely unregulated market economy as public goods.
A. underproduce B. overproduce C. not produce at all D. Both A and C are correct.