The "Bridge to Nowhere

question 188

Multiple Choice

The "Bridge to Nowhere":

• A) cost the local community about $35,000 per person.
• B) is a special case in which special interests can maximize society's well-being.
• C) would have created large external costs, an example of the inefficient projects proposed by self-interested politicians.
• D) connects Cuba to Key West, Florida.

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Definitions:

Inelastic Demand

The case in which the price elasticity of demand is less than 1.

FICA

FICA stands for the Federal Insurance Contributions Act and is a United States federal payroll tax that funds Social Security and Medicare programs.

Payroll Tax

A tax on the earnings an employer pays to an employee.

Burden Of The Tax

The burden of the tax refers to the impact of a tax on the economic welfare of stakeholders, indicating who ultimately bears the cost of the tax.