For a given supply curve, the deadweight loss from the imposition of a tax is smaller if demand is more elastic
Indicate whether the statement is true or false
FALSE
You might also like to view...
Economists are reluctant to state that price controls are desirable or undesirable because
A) whether the gains from the winners exceed the losses from the losers is not strictly an economic question. B) it is impossible to evaluate the impact on quantity demanded and quantity supplied as a result of price controls. C) sometimes price controls result in increases in economic efficiency and sometimes they result in decreases in economic efficiency. D) economists are reluctant to conduct positive analysis of price controls.
If the marginal propensity to consume is 0.75, the marginal propensity to save is
A) 0.25. B) 0.5. C) 1. D) 3.
Abigail wishes to spend more time this week studying for her classes. Using the idea of a production possibilities curve, and assuming Abigail is currently spending all of her time efficiently, Abigail can spend more time studying this week only if
a. she also spends more time doing other things. b. she spends less time doing other things. c. Daylight Savings Time begins this week, so everyone moves their clocks ahead one hour. d. none of the above.
Holding the nonprice determinants of demand constant, a change in price would
a. result in either a decrease in demand or an increase in demand. b. result in a movement along a stationary demand curve. c. result in a shift of supply. d. have no effect on the quantity demanded.