Which of the Following Is Not a Major Criticism of the Single-Tax

question 98

Multiple Choice

Which of the following is not a major criticism of the single-tax movement?

• A) It is impractical because most income payments are a mixture of interest, rent, wages, and profits.
• B) It is inefficient because the land-rent tax will distort the use of land resources, thereby preventing allocative efficiency.
• C) It is unfair because there are other "unearned" incomes besides land rent, such as capital-gains income.
• D) It is inadequate because current levels of government spending are too big to be sufficiently funded by rent tax alone.

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Definitions:

Marginal Cost Curve

A graph that displays how the expense of producing one additional unit of a good changes as production volume varies.

Average Variable Cost

The variable cost per unit of output.

Short-Run Marginal Cost

The cost incurred by producing one more unit of a product or service in the short term, where some inputs are fixed.

Average Variable Cost

The cost per unit of output that varies with the level of production, excluding fixed costs.