A tax wedge is ________
A) the difference between the tax rate on income and capital gains
B) equal to the difference between what people earn before and after taxes are accounted for
C) the size of the decrease in labor force participation when labor income is taxed
D) the difference between the rate on Treasury securities and the income tax rate
B
You might also like to view...
If the demand curve for oranges is a downward sloping straight line, the price elasticity of demand will increase the
A) higher the price of oranges. B) higher the price of other fruits. C) higher the income level of consumers. D) lower the price of oranges.
Franklin D. Roosevelt's nationwide "Bank Holiday" in March 1933 merely finished the job started by the governors of the states, who were already closing down the banking systems
Indicate whether the statement is true or false