Explain how a distorting tax can improve efficiency when there are already present other taxes that distort decisions as well
What will be an ideal response?
By imposing a tax on one good when there are already distorting taxes on other goods this helps consumers face equal taxes on all goods. Therefore, they cannot avoid the tax by changing what they buy.
Economics
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If 6 workers can wash 42 cars a day and 7 workers can wash 50 cars a day, then the marginal product of the 7th worker equals
A) 7.1 cars a day. B) 7 cars a day. C) 42 cars a day. D) 50 cars a day. E) 8 cars a day.
Economics
According to the data in the table above, real GDP grew at a rate of ________ between year 1 and year 2
A) 10 percent B) 1 percent C) 50 percent D) 5 percent E) 55 percent
Economics