Suppose that the supply of insulin is perfectly elastic and the demand for insulin perfectly inelastic. Then the result of an excise tax would be
a. a significant increase in government revenue and a significant decrease in the quantity consumed.
b. a significant decrease in the quantity consumed with no change in government revenue.
c. a significant increase in government revenue and no change in the quantity consumed.
d. no increase in government revenue and no change in the quantity consumed.
c
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In the case of perfect complements, more is not necessarily better. ?
Answer the following statement true (T) or false (F)
In the figure above, U.S. consumers buy ________ airplanes per year at ________ million per airplane
A) 200; $150 B) 400; $100 C) 700; $150 D) 400; $150 E) 200; $100
U.S. multinational corporations are allowed tax _________ for taxes paid to foreign governments.
A. deductions B. exemptions C. loans D. credits
To identify whether fiscal policy is expansionary or contractionary, one should focus on the cyclical deficit
Indicate whether the statement is true or false