Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic
If 3 million tickets are currently sold at a price of $5, approximately how much tax revenue could the government generate from a $1 specific tax? A) $18 million
B) $3 million
C) $2.5 million
D) $1.5 million
C
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Typical goals for fiscal policy are
A) running high deficits and raising consumer prices. B) high prices for consumers and low prices for businesses. C) high employment and price stability. D) increasing the money supply so the government can spend more.
The resource income earned by those who supply ________ is called wages
A) labor B) natural resources C) entrepreneurship D) capital
If the marginal tax rate is greater than the average tax rate, the tax structure is described as regressive
Indicate whether the statement is true or false
Why might luxury-goods retailers limit purchases on a good by consumers "due to popular demand"?
A) Because they are worried about running out of supply, leaving some of their customers unhappy that they can't buy the good. B) Because they are trying to use scarcity as a way to improve the brand image of the good. C) Because they are limiting the possibility of arbitrage, where consumers buy in a low price area and resell in a higher price area. D) Because they are worried that they'll run out of the good during the all-important holiday season.