Many environmentalists have advocated a substantial increase in the gasoline tax to cut down the federal deficit and to reduce pollution due to auto emissions. Such a tax increase would be devastating to people who commute significant distances to work. In fact, it would provide an incentive to relocate closer to work or change jobs. Economists refer to such effects of taxes as the
a. burden of a tax.
b. regressive incidence of a tax.
c. incidence of a tax.
d. excess burden of a tax.
d
Economics
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Use data in the following table to explain the economic effects of a price floor at $8, at $9, and at $10. Explain the economic effects
Economics
Which of the following represents the most expansionary fiscal policy?
A. A $10 billion tax cut. B. A $10 billion increase in government spending. C. A $10 billion tax increase. D. A $10 billion decrease in government spending.
Economics