The best way to evaluate the effect of a specific tax is _____. ...

[audragclark]

The best way to evaluate the effect of a specific tax is _____.
 
  a. to consider the tax in isolation
  b. to consider the tax in the context of the entire tax system
  c. to consider whether a tax is progressive, regressive, or proportional
   d. a and c

Question 2

If there are 2 identical firms in a market that choose the quantity they produce, total welfare is the highest when there is a cartel.
 
  Indicate whether the statement is true or false

[marict]

Answer to Question 1

b

Answer to Question 2

False. A cartel acts like a virtual monopoly and thus produces the least output. Output is the greatest if the 2 firms act as a Stackelberg Oligopoly which is therefore preferred.

[audragclark]

Excellent

[xoxo123]

Gracias!