Fact: People use water for many different purposes, from drinking and cleaning to filling pools, balloons, and squirt guns. Economists acknowledge the multiple uses of water when they point out that
A) everybody needs water.
B) water is a good with many alternative uses at the margin.
C) the demand for water is completely inelastic—consumers are totally insensitive to changes in the price of water.
D) nothing but water can be used to serve all the purposes water serves.
B
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Ad valorem tariffs on imports are based on a percentage of an import's value; specific tariffs are based on a lump sum per physical unit imported
a. True b. False
Vertical equity refers to the notion that equally situated individuals should be taxed equally
a. True b. False Indicate whether the statement is true or false
In the market for used cars, a surplus of used cars would, ceteris paribus:
The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a soccer match at the stadium is $10. Which of the following is true?
A. The demand for each football game must be more than the demand for each soccer match. B. The supply of soccer matches must be less elastic than the supply of football games. C. The demand for each soccer game must be greater than the demand for each football game. D. Football games must be more expensive to produce than a soccer match.