Special-interest legislation that imposes costs broadly over many taxpayers can be enacted because
a. taxpayers benefit from this type of legislation
b. taxpayers remain rationally ignorant of the legislation
c. only the wealthy pay these taxes
d. these taxes are actually borne by a minority of taxpayers
e. the Constitution requires special-interest legislation
B
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Which of the following best describes the notion of full employment?
(a) Less than 5% of the labour force is unemployed; (b) The current level of employment that is sustainable; (c) Employment and unemployment are at their "natural" rates; (d) All of the above could describe it.
Which of the following illustrates the principle of second best?
A. A tax imposed on land, because this tax distorts economic decisions less than taxes on other factors of production. B. The government imposes a tax on a paper manufacturer that equals the cost of cleaning the river damaged by the waste discharged into the river by the paper manufacturer. C. The government decides to impose taxes on all grains, rather than imposing a tax only on wheat. D. The government imposes taxes on gasoline, and the tax revenue collected is used to pay for road repair.