The tax revenue received by a government from a sales tax is larger if demand is relatively more elastic
a. True
b. False
Indicate whether the statement is true or false
False
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Every society faces trade-offs. Explain the concept of trade-offs
What will be an ideal response?
The demand for a monopoly's output is p = 100 - Q. The firm's production function is Q = 2L. Which of the following is the firm's demand for labor?
A) w = 200 - 8L B) w = 200 - 4L C) w = 100 - L D) w = 2L
In the "Prisoners' Dilemma" game: a. When the prisoners follow their dominant strategy and confess, both will be worse off than if each had remained silent. b. a player would be better off if he did not confess and the other player confessed
c. a player would be better off if both he and the other player confessed. d. None of the above is true.
A system of transferable pollution rights: a. increases the quantity of pollution generated
b. provides firms with an incentive to develop new pollution-abatement technologies. c. is not as cost-effective in reducing pollution as a system based on compliance standards. d. is characterized by none of the above.