To calculate the revenue government receives when a tax is imposed on a good, multiply the
A) pre-tax equilibrium price by the pre-tax quantity.
B) after-tax equilibrium price by the after-tax quantity.
C) tax by the pre-tax quantity.
D) tax by the after-tax quantity.
E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.
D
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A period in which the economy is growing at a rate significantly below normal is called a(n):
A. recession. B. peak. C. boom. D. expansion.
Which of the following is a positive economic statement?
A. We should try to eliminate poverty in the United States. B. If the price of eggs increases, the quantity demanded of eggs will fall. C. Policymakers should strive to eliminate government budget deficits. D. The President of the United States should promote high employment growth in the United States.
If a currency has a fixed exchange rate, it is not subject to the forces of supply and demand
Indicate whether the statement is true or false
The All Smiles Greeting Card Company wants to increase the quantity of greeting cards it sells by 20%. If the price elasticity of demand is -5.0, the company must
A. increase price by 0.25%. B. decrease price by 0.25%. C. decrease price by 4.0%. D. increase price by 4.0%.