An income tax will have zero welfare cost when an individuals labor supply curve is perfectly inelastic _____.
A) always
B) never
C) only if the income effect is zero
D) only if the substitution effect is zero
Correct Answer:
Verified
Q24: The ratio of the burden of the
Q25: Lump sum taxes _.
A)are difficult to model
Q26: Taxpayers would be better off if a
Q27: When a unit tax is placed on
Q28: As a tax increases,the excess burden from
Q30: The fact that individuals substitute away from
Q31: Which of the following is an advantage
Q32: Changing the legal assignment of a tax
Q33: The more inelastic the schedule,the greater the
Q34: Ad valorem taxes are based on the
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