In which of the following cases is it most likely that an increase in the size of a tax will decrease tax revenue?
a. The price elasticity of demand is small, and the price elasticity of supply is large.
b. The price elasticity of demand is large, and the price elasticity of supply is small.
c. The price elasticity of demand and the price elasticity of supply are both small.
d. The price elasticity of demand and the price elasticity of supply are both large.
d
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More water pollution in the United States comes from __________ than any other source
a. factories b. sulfur dioxide (i.e., acid rain) c. cars d. chemicals (used in pesticides and fertilizers) and sewage e. garbage
A key assumption of most economic analysis is that people act rationally, meaning they respond to incentives.
Answer the following statement true (T) or false (F)
The law passed by Congress in 1914 that was designed to sharpen or define further the vagueness of the Sherman Act is called
A. the Robinson-Patman Act. B. the Wheeler-Lea Act. C. the Federal Trade Commission Act. D. the Clayton Act.
The sum of net exports of goods and services, net income from abroad, and net unilateral transfers equals
A. the financial account balance. B. the current account balance. C. the balance of payments. D. the balance on goods, services, and income.