For any given change in taxes, the multiplier
a. will work indirectly through consumption.
b. effect will occur in two steps.
c. effect will be smaller than for an equivalent dollar change in government spending.
d. All of the above are correct.
d
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If the government wants to reduce smoking, it should impose a tax on
a. buyers of cigarettes. b. sellers of cigarettes. c. either buyers or sellers of cigarettes. d. whichever side of the market is less elastic.
A competitive firm sells 100 units of output for $5 per unit. The firm's marginal revenue amounts to __________
Fill in the blank(s) with correct word
Explain how market failures such as the lack of property rights affect extraction of resources by business firms
What will be an ideal response?
If a market is controlled by a perfect-price-discriminating monopoly, then
A) a deadweight loss is generated. B) there is no consumer surplus. C) consumer surplus is the same as under perfect competition. D) output is less than that of a single-price monopoly.