Relating to the Economics in Practice on page 340: Europe has a carbon tax, and electricity producers are among the largest of the carbon producing firms. The carbon tax increased the price of electricity, and researchers found that the amount of the tax that was actually passed through to consumers reflected a ________ aggregate demand for electricity.
A. unit elastic
B. perfectly inelastic
C. slightly elastic
D. very inelastic
Answer: D
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The long-term financing dimension of financial management deals with the selection, issuance, and management of long-term debt and equity.
a. true b. false
A cheese-by-mail club that charges an annual membership fee and an additional fee per cheese shipment utilizes
A) perfect price discrimination B) third-degree price discrimination. C) two-part pricing. D) uniform pricing.
If the budget allocation for a government agency depends on the last period's spending alone, agency heads have a clear incentive to
A. spend more money even if it is done inefficiently. B. spend more money only if it is done efficiently. C. not increase or decrease spending to keep their budget balanced. D. spend less money if that is the most efficient decision.
Classical economists believe that
A) money is neutral. B) an increase in the real money supply affects output. C) inflation is determined by wage growth. D) monetary policy should be used to combat recessions.