When higher taxes discourage whatever activity is being taxed, that is called
A. a multiplier effect.
B. tax discouragement.
C. a negative incentive effect.
D. tax abatement.
Answer: C
Economics
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The Chinese protected its automobile industry through restrictive tariffs and quotas. Which of the following BEST describes this practice?
a. antidumping duties b. infant industry protection c. voluntary export restraints d. price discrimination
Economics
The figure above represents the relationship between output and cost in an industry with an external cost. When output is at D, what distance represents the marginal external cost?
A) AB B) BC C) CD D) BD E) None of the above answers is correct.
Economics