Identify two kinds of circumstances which may favor nonneutral taxes
What will be an ideal response?
The two kinds of circumstances in which nonneutral taxes may be justified would be either the presence of externalities or the presence of other taxes.
Economics
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Refer to the diagram. The combination of computers and bicycles shown by point F:
A. is unattainable given currently available resources and technology.
B. is attainable but implies that the economy is not using all its resources.
C. is irrelevant because it is inconsistent with consumer preferences.
D. suggests that opportunity costs are constant.
Economics
Refer to Table 8.1. Assume the wage rate is $10 and the firm has $1,000 in unavoidable fixed cost. What is the average cost of producing 65 units of output?
A. $40
B. $15.38
C. $0.50
D. $16
Economics