Suppose an excise tax is imposed on luxury boats and yachts. Economists argue that such a tax
a. is sure to be vertically equitable, since buyers of luxury boats and yachts are wealthy.
b. entails no deadweight loss as long as buyers of boats and yachts can easily substitute one luxury good for another.
c. violates the benefits principle of taxation.
d. may burden workers in the luxury-boat-and-yacht industry more than it burdens the buyers of luxury boats and yachts.
d
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Refer to Scenario 13.1. Your negotiations are an example of:
A) a noncooperative game. B) a cooperative game. C) a constant sum game. D) a competitive game. E) both B and C
When a tax is imposed on the sellers of a good, the
a. demand curve shifts downward by less than the amount of the tax. b. demand curve shifts downward by the amount of the tax. c. supply curve shifts upward by less than the amount of the tax. d. supply curve shifts upward by the amount of the tax.