When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?

Related Mcqs:

The reduction of tax ?

A. will have no impact on tax revenue. B. will always reduce tax revenue regardless of the prior size of the tax C. could increase tax revenue if the tax had been extremely high D. causes a market to become less efficient...

If the Pakistani government runs a budget surplus there is ?

A. an excess of government receipts over government spending. B. an equality of government spending and receipts. C. a surplus of government workers. D. an excess of government spending over government receipts....

The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?

A. Proportional tax rate B. average tax rate C. marginal tax rate D. vertical tax rate E. horizontal tax rate...

When a tax on a good start small and is gradually increased tax revenue ?

A. will fall B. will rise C. will first rise and then fall D. will first fall and then rise...

If a tax on a good is doubled the deadweight loss from the tax ?

A. doubles B. stays the same C. increase by a factor of four. D. could rise or fall...