If the government's goal is to alter people's behavior through taxation, taxing goods with relatively elastic demand and supply would be most effective.
Answer the following statement true (T) or false (F)
True
When demand is elastic, people respond more to the price change caused by the tax.
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Negative externalities might be reduced by creating new rights, which we would describe as ________
A) adjudication B) remuneration C) legislation D) substantiation E) reparation
The reason why the price level does not change along the horizontal segment of the aggregate supply curve is because
a. the price increases for some goods are offset by the price decreases for other goods b. unused resources can be put to work without creating any upward pressure on prices c. the government fixed the price of resources so that they cannot increase in price when employment levels rise d. GDP rises rapidly so that the price level does not rise e. GDP rises slowly so that the price level does not rise
The danger of using the national defense argument to protect domestic industries necessary to wage war is that
a. it has no validity on non-economic grounds. b. it is unrelated to the United States' ability to wage war. c. other nations will retaliate with tariffs against U.S. producers of war material. d. industries with only the most peripheral relationship to defense are likely to invoke this argument on their behalf.
It is difficult for cyclically unemployed individuals to find jobs because:
A. they do not meet the qualifications required for the available jobs. B. the economy is in a recession. C. they quit their last job and employers view them with suspicion. D. they have not looked long enough to find a job.