If the government imposes an excise tax on a good, it will collect the most tax revenues from it if the demand for the good is:
A. Elastic
B. Inelastic
C. Unit elastic
D. Perfectly elastic
B. Inelastic
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Along a curved line, the slope at the maximum
A) is greater than zero. B) is zero. C) is less than zero. D) may be greater than, less than, or equal to zero.
Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widgets imported?
What will be an ideal response?
Explain what is meant by economic efficiency. Does efficiency imply that the fastest production processes or the most powerful equipment must always be used? Explain
What will be an ideal response?
When the Social Security surplus is used to cover the current operating expenses of the federal government, it will
a. make it easier for future taxpayers to provide promised Social Security benefits to baby boomers. b. reduce the outstanding debt of the federal government. c. make it possible for Congress and the president to spend more without raising current taxes or borrowing from the general public. d. increase the credibility of the Social Security benefits promised to future retirees.