Other things equal, for a given tax, if the demand curve is more elastic,
a. the greater the tax revenue raised and the greater the deadweight cost of the tax.
b. the greater the tax revenue raised and the smaller the deadweight cost of the tax.
c. the less the tax revenue raised and the greater the deadweight cost of the tax.
d. the less the tax revenue raised and the smaller the deadweight cost of the tax.
c
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If the GDP in one year is greater than it was in the previous year, then economic growth must have occurred
Indicate whether the statement is true or false
If the marginal tax on labor income rises then the tax receipts of the government:
a. rise. b. stay the say. c. fall. d. may rise, fall or stay the same.
A barter arrangement basically means
A. a credit deal. B. a cashless transaction. C. buying with an I.O.U. D. exchanging goods for cash.
At every output level, a firm's short-run average cost (SAC) equals or exceeds its long-run average cost (LAC) because
A) diminishing returns apply in the short run. B) returns to scale only exist in the long run. C) opportunity costs are taken into account in the short run. D) there are at least as many possibilities for substitution between factors of production in the long run as in the short run. E) none of the above