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Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the ...

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Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the ...

Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the income tax affect gasoline consumption to answer the following question(s). This Application discusses a gasoline tax increase which is combined with a cut in income taxes to insure that total tax revenue does not change.

Recall the Application. If a gasoline tax increase is combined with a cut in income taxes to insure that total tax revenue does not change, the gasoline tax is:

▸ progressive.

▸ ineffective.

▸ revenue neutral.

▸ regressive.

Textbook

Microeconomics: Principles, Applications, and Tools

Edition: 8^th

Authors: O'Sullivan, Sheffrin, Perez

Read 117 times

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this is exactly what I needed

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