(A) If you live in a 1st best world
(B) If you live in a 2nd best world
(C) If the tax rates on some of the items are prohibitively high
(D) Either of the above
Tax incidence is the?
(A) ultimate distribution of a tax’s burden.
(B) measure of the impact the tax has on employment and output.
(C) behaviour of shifting the tax to another party.
(D) structure of the tax.
A 15% VAT is a(n):
(A) Proportional income tax.
(B) Fixed excise duty.
(C) Ad valorem indirect tax.
(D) None of the above.
The government imposes a new income tax legislation under which every male taxpayer must pay 15% of his income as taxes, while every female taxpayer must pay 20% of her income as taxes. Such tax legislation violates which equity principle?
(A) Both horizontal equity and vertical equity
(B) Vertical equity only
(C) Horizontal equity only
(D) Neither
According to the Laffer curve, as tax rates increase, tax revenues?
(A) decrease continuously.
(B) initially decrease and then increase.
(C) rise continuously.
(D) initially increase and then decrease.
The diagram that shows the money received and paid out by each sector of the economy is the?
(A) income-price diagram.
(B) income-expenditures diagram.
(C) circular flow diagram.
(D) aggregate demand-aggregate supply diagram.
The accelerator theory of investment says that induced investment is determined by?
(A) the rate of change of national income.
(B) expectations.
(C) the level of national income.
(D) the level of aggregate demand.
__ becomes first country in Asia to launch hydrogen powered train.
(A) Indonesia
(B) China
(C) India
(D) Japan