The price elasticity of demand for cigarettes by adults is -1.3 while for young smokers it is -0.4 . A tax on cigarettes would lead to which of the following effects?
a. a smaller reduction in the quantity of cigarettes demanded by younger smokers than by older smokers
b. the same reduction in the quantity of cigarettes demanded by both age groups
c. a larger reduction in the quantity of cigarettes demanded by younger smokers than by older smokers
d. no impact on the quantity of cigarettes demanded by either group
e. not enough information to predict the impact
C
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a. More inelastic b. More elastic c. Unitary elastic d. None of the above
Which of the following is a correct characterization of socialism?
a. Tradition answers the basic economic questions. b. Markets are used exclusively to answer the basic economic questions. c. Central planning is seldom used to answer the basic economic questions. d. Government ownership of many resources and centralized decision-making answers the basic economic questions.
Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage
What does the Gini coefficient measure?
A. the correlation coefficient between income and education B. the degree of inequality in an income distribution C. the degree of tax incidence paid by poor workers D. the covariance of income and education E. the rate of growth of income inequality over time