In the short run, specific taxes on a firm result in
a. price increases that may not persist in the long run.
b. an increase in consumer surplus because the tax permits spending in additional government services.
c. shortages of the good being taxed.
d. an increase in producer surplus because of the rise in price.
a
Economics
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If a country's GDP increases and all other variables remains constant, ________
A) its income per worker will increase B) its income per capita will fall C) its GNP will fall D) its trade surplus will increase
Economics
According to the classical system, a decrease in the income tax rate reduces the after-tax real wage
a. and shifts the labor supply schedule to the right. b. and shifts the labor supply schedule to the left. c. without shifting the labor supply schedule. d. None of the above
Economics