Multiple Choice
Many environmentalists have advocated a substantial increase in the gasoline tax to cut down the federal deficit and to reduce pollution due to auto emissions.Such a tax increase would be devastating to people who commute significant distances to work.In fact, it would provide an incentive to relocate closer to work or change jobs.Economists refer to such effects of taxes as the
A) burden of a tax.
B) regressive incidence of a tax.
C) incidence of a tax.
D) excess burden of a tax.
Correct Answer:

Verified
Correct Answer:
Verified
Q34: A tax that creates an excess burden
Q35: If Ron earns $50,000 in salary and
Q36: Existing loopholes erode the progressivity of the
Q37: Harun earned $50,000 in salary and paid
Q38: Loopholes reduce the efficiency of the tax
Q40: For about the past 45 years, federal
Q41: If a tax is proportional, the average
Q42: For about the past 45 years, state
Q43: Which of the following is not true
Q44: If demand is more elastic, the portion