In the case of a linear demand curve, demand becomes more price elastic as price increases
Indicate whether the statement is true or false
True . For a demand curve of the form Q = a - bp, elasticity can be written as
-b[p/(a - bp)]. As p increases, the term in square brackets increases, making the elasticity increase.
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The largest source of tax receipts for the government is
A) personal taxes. B) contributions for social insurance. C) taxes on production and imports. D) corporate taxes.
Which of the following is a definition of the aggregate production function?
a. the relationship describing which inputs an economy can use with different quantities of labor b. the relationship describing how much labor an economy can supply with different quantities of capital c. the relationship describing how much output an economy can produce with different quantities of labor d. the relationship describing what services an economy can produce with different quantities of capital e. the relationship describing how much output a firm can produce with different quantities of capital
The economic burden of an excise tax
a. can usually be partially shifted from buyers onto sellers. b. equals the revenue from the tax. c. is less than the burden of an income tax that would raise the same revenue. d. is shared equally by buyers and sellers.
A government-sponsored good is often
A) produced by the government. B) subsidized. C) taxed. D) advertised.