If government decides to produce a collective consumption good, taxes have to be levied to finance the production. In evaluating government provision then, the benefits of public production have to be _____
a. high
b. weighed against the excess burden of taxation
c. positive
d. weighted against the tax incidence on poor families
b
Economics
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If a monopoly suddenly became a perfectly competitive industry, equilibrium output would _________, and the equilibrium price would _________.
a. increase; increase b. decrease; decrease c. increase; decrease d. decrease; increase
Economics
If a monopolistic competitor lowers its price, it will attract a significant number of new customers.
Answer the following statement true (T) or false (F)
Economics