Taxes distort economic behaviour because
A) they change the composition of income and spending.
B) they cause deviations in economic behaviour from the efficient,free-market outcome.
C) they change the balance between private and public expenditures.
D) they change the composition of consumption,investment,government spending,and net exports.
Correct Answer:
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Q22: A decrease in the average tax rate,with
Q23: The full-employment deficit is
A)the number of jobs
Q24: Government capital consists of
A)money owned by the
Q25: The average tax rate is
A)the fraction of
Q26: Roads and education are examples of
A)government physical
Q29: All of the following are government capital
Q30: Suppose that all workers place a value
Q31: Assume that the lost output due to
Q32: What is the difference between the average
Q40: The marginal tax rate is
A)the fraction of
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