The so-called "death tax" might
A) aim to alter endowments so as to attain an inefficient outcome.
B) aim to alter endowments consistent with the First Theorem of Welfare Economics.
C) aim to alter endowments consistent with the Second Theorem of Welfare Economics.
D) aim to alter prices consistent with the First Theorem of Welfare Economics.
C
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Economic profits are
A) the same as accounting profits when firms do not own capital equipment. B) always greater than accounting profits. C) equal to accounting profits plus the implicit costs of the firm. D) whatever remains after all opportunity costs have been taken into account.
If average labor productivity in two countries is the same, average living standards will be higher in the country with:
A. the lower share of population employed. B. the smaller population. C. the higher share of population employed D. the larger population.