If political officials want to minimize the excess burden accompanying a tax, they should set the tax at a rate
a. that will maximize the revenue derived from the tax.
b. slightly above the rate that will maximize the revenue derived from the tax.
c. well below the rate that will maximize the revenue derived from the tax.
d. that is the highest that could possibly be imposed.
C
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Consider the segment of a demand curve along which all price elasticities of demand are less than 1 . A decrease in price anywhere along that segment
a. shifts that segment of the demand curve to the right b. increases total revenue c. decreases total revenue d. shifts that segment of the demand curve to the left e. raises the price elasticity of demand
Which of the following is characteristic of a downturn in the business cycle?
A. Higher unemployment rates B. Higher prices C. Growth in real output D. Increased population
In the diagram below, the economic rent is represented by 
A. area B. B. area A. C. areas B and C. D. areas A and B.
The natural rate of unemployment:
a. Is equal to the total of frictional and structural unemployment b. Means that the economy will always realize its potential output c. Is a fixed unemployment rate that does not change over time d. Means that the economy will always operate at its natural rate