Governments should tax a market with an inelastic demand if the purpose of the government is to:
a. increase its tax revenue
b. discourage the consumption of a good.
c. increase the deadweight loss from the tax.
d. discourage the production of a good.
a
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Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product. B) the marginal factor cost of every input equals that input's marginal revenue product. C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input. D) equal amounts of each input are employed.
Increased border patrol will affect the labor market in California. With a(n) _________ in labor supply, we would expect wages to __________.
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease
The law of increasing opportunity cost means that:
A) higher wages, rents, and interest will increase opportunity costs. B) opportunity cost will decrease the more you decide to produce more of one good along a production possibilities curve. C) opportunity cost increases when you produce more of one good while moving along a production possibilities curve. D) costs of production decrease at first, but then eventually rise.
Which of the following defines monopolization?
A) the Securities and Exchange Commission B) the Federal Reserve C) U.S. Supreme Court D) Federal Trade Commission Act