A tax on a product will yield little revenue if
a. supply is elastic
b. supply is inelastic
c. demand is inelastic
d. demand is elastic
e. no tax in a developing country will yield significant revenue
C
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When compared to a public housing of the same value, a rent subsidy _____
a. would always make the individual better off b. would always make the individual worse off c. would make some individuals better off and some individuals worse off depending upon their preferences d. has a lower potential for fraud
When a price ceiling which had been set below equilibrium price is removed, what happens next?
A. quantity supplied rises. B. quantity demanded falls. C. price rises. D. all of the choices.
After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?
a. The marginal benefit of going to Cancun increases. b. The marginal cost of going to Cancun decreases. c. The marginal benefit of going to Ft. Lauderdale decreases. d. The marginal cost of going to Ft. Lauderdale decreases.
Which of the following will NOT cause increasing returns to scale and declining average costs?
a. focusing on a single product line and specializing b. exporting goods to other countries c. selling more in their home market d. hiring more workers at the existing plant