Government revenue from an excise tax of a given amount is greater when demand is relatively inelastic than when it is relatively elastic
Indicate whether the statement is true or false
True . The tax will result in larger quantity sold the more inelastic demand is. Since the tax is on a per unit basis, the tax revenue is greater for the inelastic demand curve.
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As more people quit smoking in the United States, what is expected to happen to the price elasticity of supply of cigarettes?
A) It will decrease. B) It will increase. C) It can increase or decrease. D) It will not change.
The investment component of GDP includes: a. funds in individual retirement accounts
b. construction of a new steel mill. c. the sale of shares of Coca-Cola stock. d. the purchase of a refrigerator by a household.
Majority rule will produce the outcome most preferred by the median voter
a. True b. False Indicate whether the statement is true or false
A large underground economy results in an ________.
A. understated GDP B. overstated GDP price index C. overstated GDP D. understated GDP price index