Which economic policy would a government adopt in order to maximize net social welfare?
a. Increasing taxes on commodities with a relatively low elasticity of supply
b. Increasing subsidies on commodities with a relatively high elasticity of demand
c. Reducing subsidies on commodities with a relatively low elasticity of demand
d. Reducing taxes on commodities with a relatively high elasticity of supply
d
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Which measure uses a common set of international prices for all goods and services produced?
a. purchasing power parity income levels b. GNI price deflators c. foreign exchange rate conversions to U.S. dollars d. the exchange rate
"There should be less discrimination against the elderly." This is an example of a
a. normative statement b. positive statement c. forecast d. hypothesis e. prediction
According to the Laffer curve, after raising the tax rate to some level, any further increase by government will cause tax revenues to decrease
Indicate whether the statement is true or false
On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. Suppose that the Minnesota State Park Service institutes a variable fee structure. On weekdays when the picnic areas get little use, the fee is zero. On normal weekends, the fee is $8 per person. On holiday weekends, the fee is $14 per
person. The fee system corrects a problem known as the a. Coase theorem. b. free rider problem. c. Tragedy of the Commons. d. public goods problem.