A government wishing to maximize its tax revenues should
A) always assess the highest possible tax rate.
B) always assess the lowest possible tax rate.
C) determine the highest possible tax rate and then back it down by exactly 4 percentage points.
D) push tax rates up to the point where revenues peak, but raise the tax rate no farther.
D
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Why is bundling of unrelated products, one of which is available in the competitive market, a losing strategy?
Excludable goods are those goods that a person can be prevented from consuming
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct?
a. By definition, all natural resources are nonrenewable. b. Market prices give us reason to believe that natural resources are a limit to economic growth. c. An economy must be blessed with ample quantities of natural resources if it is to be a highly productive economy. d. Differences in natural resources can explain some of the differences in standards of living around the world.
The infant industry argument for protection is rejected by most economists because:
A. historical experience supports it. B. they oppose any government intervention. C. protection usually is provided only temporarily. D. many infant industries become reliant on protection and do not mature.