The excess burden of taxation can be minimized by _____
a. placing taxes on goods with elastic demand schedules
b. placing taxes on goods with inelastic demand schedules
c. placing taxes on goods with elastic supply schedules
d. placing taxes on goods with inelastic supply schedule
e. b and d
e
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In the above figure, the firm is a monopolistically competitive firm. In the long run, its economic profit will be
A) zero. B) between zero and $50 per day. C) greater than $50 per day. D) some amount that cannot be determined without more information.
What is productivity?
What will be an ideal response?
Adverse selection occurs in the insurance market because:
A. the seller has more information than the buyer. B. the buyer has more information than the seller. C. both the buyer and the seller have incomplete information. D. Any of these could be the cause of adverse selection in insurance market.
The goal of multilateral trade agreements is usually to
a. reduce tariffs in various nations simultaneously to blunt political pressure for protectionism. b. ensure that tariffs are used only to promote infant industries that will eventually become viable. c. use targeted tariffs to ensure that nations produce those goods in which they have a comparative advantage. d. equalize the level of tariffs across nations so no nation is disadvantaged relative to others.