The burden of a tax is
a. the amount of revenue that the government raises from the tax.
b. what it would cost in alternative tax revenue to provide the same level of service.
c. greater as the total revenue from the tax decreases.
d. the amount the taxpayer would have to be given to be just as well off in the presence of the tax as in its absence.
d
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The Federal Deposit Insurance Corporation helps to reduce the number of bank failures because
a. of its rule that individuals cannot make a run on a bank b. it promises to reimburse up to $10,000 of lost deposits in an account c. depositors will be secure in the fact that their deposits are protected d. it pays attention to the changes in the economy e. it is a soothing agent for individuals who have accounts over $100,000
Situation 37-2 Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 37-2. Both Dan and Ann realize that they are better off producing and not stealing from each other than producing and stealing from each other. They agree not to steal from each other. There is no enforcer of their agreement to not steal. It is likely that
A) Dan and Ann are in a prisoner's dilemma setting. B) Dan is in a prisoner's dilemma setting but Ann is not. C) Ann is in a prisoner's dilemma setting but Dan is not. D) neither Dan nor Ann is in a prisoner's dilemma setting.