If a tax is placed on one good and not another, the effect that causes you to buy more or less of the taxed good because you have less real buying power is called
A. income effect.
B. domino effect.
C. net effect.
D. substitution effect.
Answer: A
Economics
You might also like to view...
Refer to Table 11-7. Consider the statistics in the table above in describing the following industrialized and developing countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
Economics
Gross revenue minus explicit costs equals
A) accounting profit. B) implicit cost. C) opportunity cost. D) economic profit.
Economics
Commercial paper has a minimum maturity of
A) one day. B) seven days. C) 30 days. D) 270 days.
Economics
The production possibilities curve demonstrate which of the following concepts?
A) scarcity B) choice C) trade-offs D) all of the above
Economics