Which of the following is TRUE of an excise tax?
A) An excise tax is always a unit tax.
B) An excise tax is levied on purchases of particular good or service.
C) An excise tax is based on an individual's income.
D) Imposing an excise tax shifts the market demand curve.
B
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Total revenue is maximized where demand is inelastic
a. True b. False
The aggregate price level is:
A. a measure of the average price level for GDP. B. measured by the CPI. C. measured by the GDP price deflator. D. All of these statements are true.
Consider a market characterized by a Herfindahl-Hirschman index of 5,000. One of the firms in this market has a Lerner index of 0.89 and is considering a horizontal merger with a competing firm. Based on this information, it is likely that the U.S. Department of Justice will:
A. reject the merger since the industry is highly concentrated, even though the firm proposing the merger has little market power. B. reject the merger since the industry is highly concentrated and the firm proposing the merger has significant market power. C. approve the merger since the industry is not concentrated and the firm proposing to merge has little market power. D. None of the answers are correct.
Which of the following us not an example of resource scarcity?
a. There is a finite amount of petroleum in the world b. Farming communities are experiencing droughts c. There are not enough physicians to satisfy all desires for health care in the US d. Cassette tapes are no longer being produced e. Teachers would like to have more instructional technology in their classrooms