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Question
Excise taxes are popular sources of revenue for governments because
a. they have very high levels of deadweight loss.
b. they are easy to understand.
c. consumers are rarely aware that they are paying them.
d. they are very stable sources of revenue.
e. they require very little paperwork.
Answer
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Related questions
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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e. The supply of jelly will decrease and the price will increase.
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Q:
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