This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1. When the government imposes taxes on buyers or sellers of a good, society
a.
loses some of the benefits of market efficiency.
b.
gains efficiency but loses equality.
c.
is better off because the government’s tax revenues exceed the deadweight loss.
d.
moves from an elastic supply curve to an inelastic supply curve.
2. Taxes are costly to market participants because they
a.
transfer resources from market participants to the government.
b.
alter incentives.
c.
distort market outcomes.
d.
All of the above are correct.
3. Taxes are of interest to
a.
microeconomists because they consider how to balance equality and efficiency.
b.
microeconomists because they consider how best to design a tax system.
c.
macroeconomists because they consider how policymakers can use the tax system to stabilize economic
activity.
d.
All of the above are correct.
Trusted by Thousands of
Students
Here are what students say about us.
Resources
Company
Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.