In many countries it has been observed that, when high marginal rates of income tax imposed on richer groups are reduced, the tax revenue raised increases. What is an implication of this observation? A Government policy should aim to minimise the income tax. B Sales taxes are always superior to income taxes as a means of raising revenue for the government. C Tax policy intended to reduce income tax on the rich may make the poor better off. D The government should always levy proportional rather than progressive income taxes.

What is an advantage of a 'creation of property rights' solution to externalities resulting from river pollution?

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Which benefit is most likely to result from a rise in the minimum price of labour (wage rate)?

What would identify a country with a fundamental balance of payments disequilibrium?

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A country's terms of trade increased from a base year value of 100 to 120 in the following year. If export prices had…