A major criticism of static tax analysis is that it
A) uses only ad valorem taxes.
B) does not use ad valorem taxes.
C) ignores the incentive effects created by higher tax rates.
D) assumes that the tax base will not increase.
C
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If the U.S. government decides to increase military spending, a possible opportunity cost could be lower spending on education.
Answer the following statement true (T) or false (F)
One of the most important determinants of a good's price elasticity of demand is
A) the profits of suppliers. B) the numbers of buyers in the market. C) the ease with which consumers can substitute other goods for that product. D) the cost of producing the good.
Which economic concept is the closest to the saying "There's no free lunch"?
a. Specialization b. Unlimited wants c. Underutilization of resources d. Opportunity costs e. Overutilization of resources
Which of the following is a characteristic of a monopolistically competitive market?I.Firms sell differentiated products.II.Each firm's product is a close substitute for other firms' products.III.Firms freely enter and exit the market.
A. I only B. I and III only C. II and III only D. I, II, and III