One advantage of user charges is they _____
a. increase with inflation
b. they apply the ability-to-pay principle of taxation
c. help ration consumption of the taxed good
d. a and c
c
You might also like to view...
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative and absolute advantage in smoothies. B. Dan has the comparative and absolute advantage in sandwiches. C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies. D. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
Suppose a whiskey maker advertises its whiskey as follows: "Whiskey that tastes expensive and is expensive." The manufacturer is assuming some customers who buy whiskey
A) have a perfectly inelastic demand for whiskey. B) have a relatively inelastic demand for whiskey. C) want to impress their friends or associates. D) will ignore the law of demand. E) will purchase more at higher than at lower prices.
Supply is elastic whenever the value of the elasticity of supply is positive and greater than 1
Indicate whether the statement is true or false
Having product differentiation means that a firm
a. cannot raise its price without suffering substantial loss of sales b. shifts the demand for the product to the left c. produces a good that is only a close substitute, at best, for the goods produced by other firms in the industry d. produces a good that is a perfect substitute for the goods produced by other firms in the industry e. has no incentive to advertise