Which of the following is an example of a good with a highly elastic supply curve?
a. luxury goods
b. tropical vacations
c. pizza
d. sports vehicles
c. pizza
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In its basic form, an IRA simply does what to taxes?
A) reduces the tax payments when you save B) eliminates them C) defers their payment to a later time D) passes the taxes on to the rich
The natural rate of unemployment is higher in Europe than in the U.S. due to ________
A) the greater relative strength of American unions B) the greater relative generosity of U.S. unemployment benefits C) the greater severity of the business cycle in Europe relative to the U.S. D) stricter European work rules
Economists state that the __________ utility a person receives from a unit of a good, the __________ the price he or she is willing to pay for it
A) more; lower B) more; higher C) less; higher D) less; lower E) b and d
Refer to the below graph. Assume the market for this product started out at the intersection of D2 and S1. Then supply shifted from S1 to S2 due to an excise tax imposed on the product. If demand subsequently shifts from D2 to D1, then which of the following will decrease?
A. The tax per unit of the product
B. The tax revenue
C. The deadweight loss due to the tax
D. The portion of the tax per unit that is shouldered by the buyers