Asked by
Vijay Sai Reddy Thummala
on Nov 26, 2024Verified
A unique characteristic of taxes on economic rents is that such taxes
A) stimulate aggregate production.
B) do not lead to a reallocation of the resource.
C) are paid by consumers.
D) are always regressive.
Economic Rents
Extra earnings or return above the normal expected return of an investment or economic activity.
Reallocation
The process of redistributing resources or assets from less productive uses to more productive ones in order to enhance efficiency and economic output.
- Evaluate the impact of taxation on economic rent and resource allocation.
Verified Answer
SB
Learning Objectives
- Evaluate the impact of taxation on economic rent and resource allocation.