A tax on a good whose demand is perfectly price inelastic will be effective in discouraging consumption of that good.
Answer the following statement true (T) or false (F)
False
You might also like to view...
When are black markets likely to arise?
A) when the government removes a price floor B) when the government enforces a price ceiling C) when there is a surplus of a good D) when the quantity supplied of a good exceeds the quantity demanded
People who use drive-through windows at restaurants and eat while on the road tend to
a. have a low opportunity cost of time b. have a high opportunity cost of time c. not maximize their utility d. act irrationally e. value their money more than their time
The shares of GDP taken in taxes by federal, state & local governments
a. have risen steadily in the past 40 years to about 22 percent. b. have dropped steadily in the past 40 years to about 6 or 7 percent. c. grew substantially until the early 1970s and have leveled off at about 10 to 11 percent. d. fell steadily until the early 1970s and has risen steadily since then.
Open-market operation means buying and selling of ________ by the ________ in an effort to influence money supply
a. equity shares; president b. government securities; Fed c. mutual fund; government d. commodities; public