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Author Question: Most public goods produced by government are nonexcludable because the costs of exclusion are too ... (Read 37 times)

Yolanda

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Most public goods produced by government are nonexcludable because the costs of exclusion are too high.
 
  a. True b. False

Question 2

Explain why a comprehensive tax reform that aims to eliminate loopholes while promising to lower rates for everyone is the best opportunity for an efficiency-enhancing tax reform.
 
  What will be an ideal response?



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Expo

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Answer to Question 1

b

Answer to Question 2

The biggest obstacle to efficiency-enhancing tax reform is special interests. Special interests worked very hard to have those tax loopholes enacted into law and will lobby hard against their elimination. Many individuals will lose some special benefit by the elimination of loopholes but everyone will benefit by the lowering of tax rates. In fact, this could be a Pareto superior move.




Yolanda

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Reply 2 on: Jul 1, 2018
Wow, this really help


bbburns21

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Reply 3 on: Yesterday
Gracias!

 

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