Is it possible to design a tax that does all of the following: i) leaves behavior unchanged so that the quantity demanded of goods and services does not change, ii) creates no excess burden, iii) is not regressive, and iv) is welfare enhancing?
What will be an ideal response?
No. Currently, it would be difficult to design a tax system that can do all of these things.
Although, economists are trying every day to get closer.
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Which of the following is a possible difference between health care and other products? a. The demand curve for health care may be steeper than the demand curve for other products
b. The demand curve for health care is a horizontal line, whereas the demand curve for other products is downward sloping. c. The supply curve for health care is fixed, whereas the supply curve of other products change with a change in its determinants. d. The demand for health care is positively related to price, whereas the demand for other products is inversely related to price. e. The supply of health care is inversely related to price whereas the supply of other products are positively related to price.
Job amenities: a. have no impact on the supply of labor
b. are not part of the compensation workers receive from employers. c. help determine the position of the labor supply curve. d. never affect the monetary wages paid to workers.