Consider that you are a government economist asked by a state legislature to apply excise taxes to a variety of goods sold in your state. You know you want to minimize the excess burden of taxation so you apply the Ramsey Rule
This means that you tell the legislature to _____. a. set the tax rates proportional to the elasticities of demand for each good b. set the tax rates in inverse proportion to the elasticities of demand for each good c. set the tax rates proportional to the elasticities of supply for each good
d. set the tax rates in inverse proportion to the elasticities of supply for each good
b
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Trade between two nations:
A) results in the maximization of total production. B) reduces global production. C) leads to a maximization of production in one nation and minimization of production in the other. D) is inefficient compared to when both do not indulge in international trade.
Teenagers are usually the demographic group with the highest unemployment rates
a. True b. False Indicate whether the statement is true or false
If there is an increase in demand for a good, what will most likely happen to the price and quantity of the good exchanged?
What will be an ideal response?
The present value of $100 to be received one year from now
A) is $100. B) is $110. C) is $90. D) cannot be determined without knowing the interest rate.