Author Question: A tax wedge is ________. A) the difference between the tax rate on income and capital gains B) ... (Read 41 times)

nmorano1 · **on:** Jun 30, 2018

A tax wedge is ________.

A) the difference between the tax rate on income and capital gains
B) equal to the difference between what people earn before and after taxes are accounted for
C) the size of the decrease in labor force participation when labor income is taxed
D) the difference between the rate on Treasury securities and the income tax rate

Question 2

Mass adoption of technology, like the steam engine, was not influenced greatly by the relative benefits and costs of the new technology compared to existing technology.

Indicate whether the statement is true or false