Higher employment taxes lead to lower levels of employment

Why might a VAT be more popular politically than a retail sales tax?

a. Its transparency appeals to voters. b. Its lack of transparency makes it easier to misunderstand its effects. c. It is more efficient per dollar raised. d. It is more consistent with the benefit principle of taxation.

In the Cournot model, the output that a firm chooses to produce increases as

A) the total output of other firms increases. B) the number of firms in the market increases. C) the number of firms in the market decreases. D) its marginal cost increases.