Deck 8: 4: Sec 84 Mc Conclusion

Question 1

Taxes are of interest to

A)microeconomists because they consider how to balance equality and efficiency.
B)microeconomists because they consider how best to design a tax system.
C)macroeconomists because they consider how policymakers can use the tax system to stabilize economic activity.
D)All of the above are correct.

Answer 1

D

Question 2

Taxes are costly to market participants because they

A)transfer resources from market participants to the government.
B)alter incentives.
C)distort market outcomes.
D)All of the above are correct.

Answer 2

A