In a General Equilibrium Model,a Tax on a Single Factor

question 31

True/False

In a general equilibrium model,a tax on a single factor in its use only in a particular sector can affect returns to all factors in all sectors.

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Definitions:

Supinator

A muscle located in the forearm that rotates the forearm and hand outward, allowing the palm to face upwards.

Deltoid

A large, triangular-shaped muscle covering the shoulder joint that is responsible for rotating and lifting the arm.

Phrenic Nerve

A nerve that originates in the neck and passes down between the lung and heart to reach the diaphragm, crucial for breathing as it controls the diaphragm's movements.

Rectus Abdominus

A long muscle running from the pubis to the ribcage, involved in flexing the lumbar spine and stabilizing the pelvis and core.