Which of the following is true about an increase of a per-unit tax in a goods market where the good is quasilinear assuming neither supply nor demand is perfectly inelastic:
A. The more price elastic either demand or supply, the lower will be tax revenue.
B. The more price elastic either demand or supply, the greater will be deadweight loss.
C. The higher the tax rate, the greater the fraction of deadweight loss over revenue.
D. Both (a) and (b)
E. Both (b) and (c)
F. Both (a) and (c)
G. All of the above
H. None of the above
Answer: G
You might also like to view...
Which of the following is NOT a direct determining factor of consumers' purchase decisions?
A) Consumers' tastes and preferences B) Market price of the finished goods C) Cost of factor inputs D) Consumers' income
An English auction consists of ________
A) an auctioneer and several bidders B) one auctioneer and one bidder C) few auctioneers and several bidders D) several auctioneers and one bidder
If the overall unemployment rate is 8 percent, it is likely that:
a. It is greater than 8 percent for teenagers b. It is less than 8 percent for college=educated middle-aged men. c. It is more than 8 percent for those without a high school diploma. d. All of the above are true.
The ocean remains one of the largest unregulated resources for each of the following reasons except
a. many countries have access to the ocean. b. it is difficult to get international cooperation among countries that hold different values. c. the oceans are so vast that enforcing any agreements would be difficult. d. All of the above are reasons the ocean remains one of the largest unregulated resources.