Question
Public finances 1. Do all taxes create an deadweight loss (also known as excess burden or allocative inefficiency) on an economy? 2. When the State
Public finances
1. Do all taxes create an deadweight loss (also known as excess burden or allocative inefficiency) on an economy?
2. When the State introduces a tax on savings, does consumption increase or savings decrease?
3. Is a subsidy for the consumption of goods or services via prices efficient for an economy?
4. Consider a market with three goods (x, g, z). Does a homogeneous tax on the consumption of goods x and g generate an excessive burden on the economy?
5. All taxes lead to the appearance of an excess tax (excessive burden). ?
6. If the demand for a good does not change when its tax is applied, does this mean that there is no excess tax (excessive burden)?
7. What elements are decisive so that there are incentives for tax evasion in a tax system?
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