If the government imposes a sales tax on a good with a relatively more inelastic demand, the _____
a. tax revenue collected by the government will be large
b. tax revenue collected by the government will be small
c. deadweight loss from the tax will be large
d. tax burden on producers will be large
a
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Free trade
A) helps economic growth by increasing tariffs. B) hurts economic growth because foreigners are not bound by the same patent laws as we are. C) helps economic growth by encouraging the sharing of technology and industrial ideas. D) hurts economic growth because foreign countries can produce goods with lower labor costs.
Overtime worked by a JCPenney associate is considered ________ and earns ________
A) labor; wages B) entrepreneurship; profit C) human capital; interest D) labor; profit
If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________
A) might rise, fall, or stay the same; decreases B) might rise, fall, or stay the same; increases C) falls; increases D) rises; might increase, decrease, or stay the same
Which of the following is likely to cause a market failure and be over consumed?
A. Cable TV B. Grazing pastureland C. Public health D. Education