Which of the following is true of net taxes?
a. The level of net taxes varies directly with the level of transfer payments.
b. The level of net taxes varies inversely with the level of transfer payments.
c. Net taxes must always be less than zero.
d. Net taxes increase when income tax rates are reduced.
e. Net taxes increase when income decreases.
Question 2
Which of the following statements is true?
a. Competitive markets result in the socially efficient price and quantity when externalities exist.
b. Command-and-control regulations set an environmental goal and dictate how the goal will be achieved.
c. Economists prefer command-and-control regulations to incentive-based pollution programs.
d. An effluent tax is a tax imposed on rich people.
true story
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