The inefficiency of a sales tax on a good is ultimately the result of the
A) low tax revenue earned by the government relative to the cost of collection.
B) wedge between what buyers pay for the good and what sellers receive for the good.
C) buyers being unable to avoid paying the tax.
D) sellers being unable to avoid paying the tax.
E) increase in the consumer surplus that is more than offset by the decrease in the producer surplus.
B
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Which of the following is NOT part of the current account?
A) Dividends received on a foreign investment B) Purchase of a plane ticket on a foreign airline C) Shipment of food aid to a poor country D) Purchase of a foreign bond E) All of the above.
Government debt is defined as:
A. accumulated deficits minus accumulated surpluses. B. a shortfall of outgoing payments under incoming revenue. C. accumulated deficits plus accumulated surpluses. D. a shortfall of incoming revenue under outgoing payment.