A tax can always be found and implemented that will correct a cause of an external effect
Indicate whether the statement is true or false
F It may be difficult to tax the cause of an external effect, as in the case of highway congestion when a fuel tax may not have effect at the time congestion exists.
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Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7 per hour. What is her marginal revenue?
A) It is $7 for the first hour and starts increasing thereafter. B) It is constant at $7. C) It coincides with the figures in the table; $12 for the first hour, $10 for the second, $9 for the third, and $8 for the fourth. D) It is $7 for the first hour and starts declining thereafter.
It is possible for the poverty rate to decline even if the number of poor people increases
Indicate whether the statement is true or false
A change in price will lead to a change in __________ and to a change in __________, while a change in preferences will lead to a change in __________ and a change in the prices of relevant resources will lead to a change in __________
A) quantity supplied; demand; income; supply B) demand; quantity supplied; supply; quantity demanded C) quantity supplied; supply; quantity supplied; demand D) quantity supplied; quantity demanded; demand; supply E) quantity supplied; quantity demanded; supply; demand
If the price of a good falls by 10% and the percentage increase in the total amount consumers spend on the good is 10%, then the good is
A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic.