Which of the following statements is positive?
A. Higher taxes are needed to support education.
B. Large budget surpluses should be avoided.
C. A tax cut that benefits high-income households is acceptable.
D. Tax increases tend to discourage saving.
Answer: D
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With the debris of more than 50 years of climbing on the beautiful high slopes — oxygen canisters, tents, backpacks and even some bodies — Mount Everest has been called the world's highest garbage dump
If Everest is a common resource, currently there is an ________ of the mountain. A) inefficient underuse B) efficient overuse C) efficient underuse D) inefficient overuse
Suppose the demand curve for aluminum cans is downward sloping, and the cans are produced in a constant cost industry where the firms are price takers. A $.25-per-can tax is levied on aluminum cans. How much will the price of aluminum cans increase in the short run and the long run?
a. short run, $.25; long run, more than $.25 b. short run, less than $.25; long run, $.25 c. short run, less than $.25; long run, more than $.25 d. short run, $.25; long run, less than $.25
When demand is unit elastic, price elasticity of demand equals
a. 1, and total revenue and price move in the same direction. b. 1, and total revenue and price move in opposite directions. c. 1, and total revenue does not change when price changes. d. 0, and total revenue does not change when price changes.