If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will:
A. not raise price at all.
B. lower price by $1.
C. raise price by more than $1.
D. raise price by $1.
Answer: A
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If the government does not know the efficient level of a Pigouvian tax to correct for a negative production externality, efficiency will still be enhanced so long as the government imposes a per-unit tax.
Answer the following statement true (T) or false (F)
Probabilities, which can be obtained by repetition or are based on general mathematical principles, are called
A) statistical. B) empirical. C) a priori. D) subjective.
Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. Producer surplus changes by the area [E + F] if price goes from equilibrium to
A. P1. B. P3. C. < P1. D. > P3.
Evidence suggests that in the last several decades, technology has played a role in driving inequality. Thus, ________ may be key to reducing inequality in the future.
A. research and development B. savings C. investment D. education