To Measure the Gains and Losses from a Tax on a Good,economists

question 141

Multiple Choice

To measure the gains and losses from a tax on a good,economists use the tools of

• A)macroeconomics.
• B)welfare economics.
• C)international-trade theory.
• D)circular-flow analysis.

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Definitions:

Qualifying Individual

A person who meets specific requirements set by a legal system or government program, often for tax purposes or eligibility for benefits.

Taxpayer

An individual or entity that is obligated to pay taxes to a federal, state, or local governmental agency.

Congress

The legislative body of the United States federal government, consisting of two houses: the Senate and the House of Representatives.

Tax Credits

Amounts that can be subtracted directly from taxes owed to the government, reducing the total tax liability.