Multiple Choice
Tax policy is partly based on the notion that:
A) high taxes are preferable to low taxes.
B) government must always run a budget surplus.
C) markets never work efficiently.
D) people respond to financial incentives.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The situation in which markets fail to
Q115: Excessive pollution is an example of market
Q177: An increase in the price of gold
Q178: Suppose an economist discovers that the relationship
Q181: Allocative efficiency occurs when:<br>A) production is allocated
Q184: Use the following to answer questions <br>Figure:
Q185: Which of the following concepts would be
Q221: When economists use the word "additional," they
Q271: Government intervention in the market is helpful
Q277: Explain why incentives are important, and give