1. Any net tax increase, i.e., a tax increase in excess of a benefit increase, c
ID: 1165583 • Letter: 1
Question
1. Any net tax increase, i.e., a tax increase in excess of a benefit increase, cannot be shifted forward to tenants if the tenant demand curve is completely elastic or if
A.tenants are partly immobile
B.the tenant demand curve is completely inelastic
C.the building supply curve is completely inelastic
D.the building supply curve is completely elastic
E.both the tenant demand curve and the building supply curve have some elasticity
2.The theoretical result that each homogeneous group of people in some mixed jurisdiction would like to have their own, segregated facilities and services is not necessarily true if
A. in the mixed situation, everyone is paying the same amount for the service
B. services are paid for through a poll tax
C. different people have different tolerances for congestion
D. the constant returns to scale assumption holds in the provision of services
E. in the mixed situation, everybody is paying a different amount for the service
3.The so-called "new" growth models allow for the possibility that some jurisdictions may grow faster than others over long periods of time. This possibility occurs because, compared with neoclassical growth models, in the new growth models
A.there are diminishing returns to every factor
B.innovation is exogenous to the model
C.the growth rate of education is given
D.the growth rate of the labour force is given
E.there are increasing returns to scale for some factor of production
Explanation / Answer
1. Any net tax increase, i.e., a tax increase in excess of a benefit increase, cannot be shifted forward to tenants if the tenant demand curve is completely elastic or if
E.both the tenant demand curve and the building supply curve have some elasticity
2. The theoretical result that each homogeneous group of people in some mixed jurisdiction would like to have their own, segregated facilities and services is not necessarily true if
C: different people have different tolerances for congestion
3 The so-called "new" growth models allow for the possibility that some jurisdictions may grow faster than others over long periods of time. This possibility occurs because, compared with neoclassical growth models, in the new growth models :
E: there are increasing returns to scale for some factor of production
As New Growth Theory holds that unlike physical objects, knowledge and technology are characterized by increasing returns, and these increasing returns drive the process of growth.
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