A tax on a previously untaxed monopoly-produced good will necessarily lower total welfare if
A) the demand curve is relatively inelastic.
B) the demand curve is relatively elastic.
C) less than the socially optimum is produced before the tax.
D) more than the socially optimum is produced before the tax.
C
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Adam Smith's book, The Wealth of Nations, was published at the time of the:
a. War of 1812 b. U.S. Declaration of Independence. c. U.S. Civil War. d. Great Depression.
Many economists believe that
a. once a negative income tax system was in place, the United States could increase economic equality indefinitely without reducing economic efficiency. b. a negative income tax would be less efficient than the current welfare system. c. replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality. d. None of the above is correct.
From 2000 to 2010, the public sector share of total output
A. Trended up for state and local governments and up for the federal government. B. Remained stable for the federal government but trended up for state and local governments. C. Trended up for state and local governments and down for the federal government. D. Remained stable for state and local governments but trended up for the federal government.
Which of the following statements is true?
A) In Romania under Communist Party rule in the 1980s, Kent cigarettes served as a medium of exchange. This illustrates the use of Kent cigarettes as fiat money. B) Commodity money has no value apart from its use as money. C) In Romania under Communist Party rule in the 1980s, Kent cigarettes served as a medium of exchange. This illustrates the use of Kent cigarettes as commodity money. D) Fiat money must be backed by gold; otherwise it is worthless.