How can tax simplification be beneficial to the economy?
What will be an ideal response?
Tax simplification would free up resources in the economy. The complexity of the tax code has created an entire industry to assist taxpayers in preparing their tax forms. If tax simplification reduces the need for tax preparation assistance, the resources used in this industry could be allocated to some other productive endeavor. This is beneficial, as it would reduce wasted resources.
Simplifying the tax code would increase economic efficiency by reducing the time and trouble firms and households spend solely to reduce their tax payments.
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Which of the following helps explain low growth rates of many less developed countries?
a. Good law enforcement b. Political stability c. Low population growth rates d. Excellent legal systems e. Near-subsistence levels of per capita output
Whenever average total cost exceeds marginal cost,
a. average total cost is rising. b. average total cost is falling. c. marginal cost is rising. d. marginal cost is falling.