The application on which the policy of toll tax is based.

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6. All of the following are sources of inefficiency except: a. public goods. b. the invisible hand. c. external costs. d. price ceilings. answer. (b. the invisible hand.) 9. Which of the following is the most correct statement about tax burdens? a. A tax burden falls most heavily on the side of the market that is closer to unit elastic. b. A tax burden falls most heavily on the side of the market that is elastic. c. A tax burden is distributed independently of relative elasticities of supply and demand. d. A tax burden falls most heavily on the market that is inelastic. answer (c. A tax burden is distributed independently of relative elasticities of supply and demand.) 16. The Coase theorem suggests that: a. the government should be actively involved in solving the problem of externalities. b. private parties may be able to solve the problem of externalities on their own. c. high transaction or bargaining costs are necessary in solving the problem of externalities. d.…

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Chapter 12, Problem 4CQQ

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The application on which the policy of toll tax is based.

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6. All of the following are sources of inefficiency except: a. public goods. b. the invisible hand. c. external costs. d. price ceilings. answer. (b. the invisible hand.) 9. Which of the following is the most correct statement about tax burdens? a. A tax burden falls most heavily on the side of the market that is closer to unit elastic. b. A tax burden falls most heavily on the side of the market that is elastic. c. A tax burden is distributed independently of relative elasticities of supply and demand. d. A tax burden falls most heavily on the market that is inelastic. answer (c. A tax burden is distributed independently of relative elasticities of supply and demand.) 16. The Coase theorem suggests that: a. the government should be actively involved in solving the problem of externalities. b. private parties may be able to solve the problem of externalities on their own. c. high transaction or bargaining costs are necessary in solving the problem of externalities. d.…

The government raises revenue through taxation to pay for the services it provides. a. True b. False

Tax incidence usually falls A. only on producers. B. on both consumers and producers. C. only on consumers. D. on the government.