In spite of the stated goal of discouraging behavior, if a sumptuary tax is applied on _____, behavior will not change very much
a. a good with elastic demand
b. a good with inelastic demand
c. income
d. wealth
b
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The currency adopted by most countries in ________ is referred to as the euro
A) Western Europe B) Europe and Asia C) Southern Europe and Northern Africa D) Eastern Europe
Refer to Figure 4-17. Suppose the market is initially in equilibrium at price P1 and then the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax?
A) The consumer's share of the tax burden is the same whether the demand curve is D1 or D2. B) The consumer will bear the entire burden of the tax if the demand curve is D2 and the producer will bear the entire burden of the tax if the demand curve is D1. C) The consumer will bear a smaller share of the tax burden if the demand curve is D1. D) The consumer will bear a smaller share of the tax burden if the demand curve is D2.
With normally-sloped IS and LM curves, an increase in government expenditure ________ consumption expenditure since autonomous consumption ________ while induced consumption ________
A) can raise or lower, falls, rises B) can raise or lower, rises, falls C) must decrease, falls, also falls D) must decrease, rises, falls E) must increase, rises, also rises
Suppose three firms form a cartel and agree to charge a specific price for their output. Each individual firm has an incentive to maintain the agreement because the firm's individual profits will be the greatest under the cartel arrangement
a. True b. False Indicate whether the statement is true or false