If the government wants to minimize the welfare loss of a tax, it should tax goods with more inelastic demands or supplies
Indicate whether the statement is true or false
TRUE
Economics
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When the price of tacos rises 4 percent, the quantity demanded decreases 10 percent. What is the price elasticity of demand for tacos?
A) 40.0 B) 25.0 C) 0.4 D) 2.5 E) 10.0
Economics
If GDP increases, then real GDP
A. may have either increased or decreased. B. has increased. C. has decreased. D. is unchanged.
Economics
Which of the following do economists consider to be capital?
A. A pair of stockings. B. A construction crane. C. A savings account. D. A share of IBM stock.
Economics
What are the benefits of using a pollution tax rather than a command-and-control system to internalize an externality?
What will be an ideal response?
Economics