Most likely, the elasticity of demand for transportation is greater than the elasticity of demand for cars.
Answer the following statement true (T) or false (F)
False
Transportation, in a general sense, has fewer substitutes because there are few alternatives of how to get from point A, to point B. Alternatively, a specific form of transportation, like that by car, has more alternatives, and thus has a higher elasticity than that of general transportation.
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Some cities finance their airports with a departure tax: every person leaving the city by plane is charged a small fixed dollar amount that is used to help pay for building and running the airport. The departure tax follows the:
a. benefits-received principle. b. ability-to-pay principle. c. flat-rate taxation principle. d. public-choice principle.
An example of direct stock ownership is when a person
a. pays into a pension fund that buys stocks b. puts money into an insurance company that buys stocks c. invests money in a mutual fund that buys stocks d. asks a stockbroker to buy stocks for him or her e. puts funds into a trust fund that buys stocks
The total of all planned production for the economy is
A. determined only by individuals and firms. B. aggregate demand. C. determined only by the government. D. aggregate supply.
Public saving in the economy can be increased by
A) lowering taxes. B) raising government spending. C) raising taxes. D) raising transfer payments.