A state government wants to increase the taxes on cigarettes to increase tax revenue. Because cigarettes are addictive, we would expect its demand to be:
A. Elastic, thus the government's cigarette-tax revenues would rise with a tax increase
B. Elastic, thus the government's cigarette-tax revenues would fall with a tax increase
C. Inelastic, thus the government's cigarette-tax revenues would fall with a tax increase
D. Inelastic, thus the government's cigarette-tax revenues would rise with a tax increase
D. Inelastic, thus the government's cigarette-tax revenues would rise with a tax increase
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Rent seeking is best defined as attempts
A) by landlords to get tenants. B) to achieve monopoly power and the resulting economic profit. C) by individuals to avoid paying taxes. D) by owners of a monopoly to sell the firm.
The fallacy of composition is the error of believing a cause-effect relationship exists between two events that are associated in time
a. True b. False
An increase in the price of the output produced by labor will:
A. increase the supply of labor. B. decrease the demand for labor. C. decrease the supply of labor. D. increase the demand for labor.
A decrease in the market clearing exchange value of the home nation's currency in terms of the currency of another nation is a home currency
A) appreciation. B) revaluation. C) depreciation. D) devaluation.