A distorting tax can improve economic welfare when other taxes that already distort decisions are present.

Answer the following statement true (T) or false (F)

True

Economics

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The substitution effect of a change in wage rate on a firm's demand for labor input will be more significant:

a. the greater the change in output. b. the more sharply curved are the firm's isoquants. c. the flatter are the firm's isoquants. d. the larger the quantity of labor employed.

Economics

As the investment demand curve becomes steeper, the crowding-out effect will become smaller

a. True b. False Indicate whether the statement is true or false

Economics