« previous next »

Author Question: How does double taxation affect consumption, saving and economic growth? What will be an ideal ... (Read 80 times)

Awilson837

  • Hero Member
  • *****
  • Posts: 509
on: Jun 29, 2018
How does double taxation affect consumption, saving and economic growth?
 
  What will be an ideal response?

Question 2

Refer to Figure 2-8. If Vidalia chooses to produce 60 dozen orchids, how many roses can it produce to maximize production?
 
  A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses


jaygar71

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

By double taxing saving, an income tax distorts the choice between consumption and saving which is really the choice between present consumption and future consumption. Double taxation also tends to reduce the saving rate and the rate of investment  and ultimately the rate of economic growth.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Massage promotes proper growth and development of infants. Massage promotes proper growth and development of infants.
World Total Energy Consumption by Fuel Type World Total Energy Consumption by Fuel Type
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
economic question economic question
economic question economic question
economic question economic question
Video: Dissociative Disorders (Part 3)

For a complete list of videos, visit our video library