Author Question: Which of the following statements is TRUE of static tax analysis? A) A government receives lower ... (Read 69 times)

Kikoku · **on:** Jun 29, 2018

Which of the following statements is TRUE of static tax analysis?

A) A government receives lower tax revenues by raising the tax rate.
B) A government receives higher tax revenues by raising the tax rate.
C) A government cannot change it tax revenues by changing the tax rate.
D) A change in the tax rate can raise or lower tax revenues, depending on other factors.

Question 2

Which of the following statements about a price system is TRUE? I. Prices ration goods and services. II. Prices indicate relative scarcity.

A) I only
B) II only
C) Both I and II
D) Neither I nor II