When a tax is imposed on a good, the result is always a shortage of the good
a. True
b. False
Indicate whether the statement is true or false
False
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The federal budget has three components. Name them
What will be an ideal response?
Ben’s Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if his business’ total revenue exceeds his:
a) capital costs. b) implicit costs. c) variable cost. d) fixed cost.
Imposing a tax on an activity that generates an external benefit will cause participants in the activity to increase the amount of the activity undertaken
a. True b. False
If the price elasticity of demand within the price range $1 and $1.25 for carrots is 0.79 and for radishes is 1.6, then, within that price range
a. carrots are more price elastic than radishes b. radishes are more price elastic than carrots c. carrots and radishes must be substitute goods d. carrots and radishes must be complementary goods e. both carrots and radishes are price elastic