A tax has an excess burden whenever
a. people are unable to alter their behavior to avoid paying it.
b. government seeks to raise it.
c. it raises a great deal of revenue.
d. it induces people to change their behavior.
d
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To test the gravity equation of trade, a regression model was calculated for two nations, the United States and Canada, testing the correlation among:
a. regional trade, size of GDP, and distance for states and provinces. b. intra-industry trade, size of GDP, and size of states and provinces. c. bilateral trade and ratio of GDP for states and provinces. d. bilateral trade, size of GDP, and distance for states and provinces.
Much of macroeconomics attempts to explain
a. changes in the price of oil and gasoline. b. long-run growth and short-run fluctuations in real GDP. c. changes in the growth rate of state government spending. d. changes in the prices and quantities of individual goods and services.