What is the advantage of the government imposing an ad valorem tax over a specific tax when facing a monopoly?
What will be an ideal response?
When comparing an ad valorem tax to a specific tax which generates the same revenue, the ad valorem tax is less distortionary, resulting in a smaller DWL.
Economics
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Which of the following agreements signed in 1989 is the precursor to NAFTA?
a. the U.S.Mexico Free Trade Agreement b. the Canada-Mexico Free Trade Agreement c. the Canada-U.S. Free Trade Agreement d. the Canada-Mexico-U.S. Free Trade Agreement
Economics
Economists suggest that food supply can best be assured by a policy of
a. self sufficiency b. encouraging imports c. focusing on export crops d. food security e. all of the above
Economics