Author Question: What do taxes do? (a) Impact the incentive to use resources efficiently (b) Transfer income from ... (Read 16 times)

krzymel · **on:** Jun 30, 2018

What do taxes do?

(a) Impact the incentive to use resources efficiently
(b) Transfer income from the person or entity paying taxes to
other individuals or entities
(c) Affect the relative prices of goods, services and resources
(d) All of the above

Question 2

The arguments against the use of active stabilization policy include all of the following except:

a. the responsiveness of voluntary unemployment to changes in GDP.
b. the existence of policy lags.
c. weak macroeconomic forecasting abilities.
d. the possibility of policy errors because of limited information.