How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government in order to bail out a specific industry?
(a) One dollar
(b) Less than one dollar because the administration of and compliance with the tax
laws creates jobs for people
(c) Less than a dollar because of the excess burden resulting from the elimination of
productive exchanges by the taxes
(d) More than a dollar because collection of the taxes requires resources that would otherwise
be available for private sector production
(a)
You might also like to view...
Suppose that a family saves and borrows to buffer itself against changes in income. These actions relate to which problem in measuring inequality?
a. in-kind transfers b. negative income tax c. transitory versus permanent income d. economic mobility
If nominal GDP is $9,600 billion and the GDP deflator is 118.5, real GDP is
A. $10,852.7 billion. B. $6,586.7 billion. C. $3,657.0 billion. D. $8,101.3 billion.