Multiple Choice
Assume that the lost output due to tax distortions is proportional to the square of the tax rate.If the average cost of the distortion created by taxes is currently $100,and the tax rate is increased from 20% to 50%,the average cost of the distortion created by taxes will increase to
A) $169.
B) $225.
C) $250.
D) $625.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: Who bears the burden of the government
Q38: According to the Ricardian equivalence proposition,current deficits<br>A)will
Q74: Since the 1950s,the share of GDP devoted
Q75: Roads and education are examples of<br>A)government physical
Q76: The political process by which fiscal policy
Q78: Suppose that all workers place a value
Q80: The primary surplus is equal to<br>A)tax revenues
Q81: Why should government smooth tax rates? If
Q83: The DEBTLAND's economic growth is 5 percent
Q84: All else constant,if the interest rate paid