Suppose an excise tax is imposed on two products X and Y, both of which have identical supply elasticities. The demand for good X is highly elastic, while the demand for good Y is highly inelastic. The deadweight loss (or excess burden) will be
a. equal in both cases.
b. larger for good X than good Y.
c. larger for good Y than good X.
d. zero in both cases.
B
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Mass marketing involves
A) using all types of media, such as television and radio, to reach as many consumers as possible. B) Internet ads only. C) using direct mailings only. D) lower-cost methods of advertising.
A natural monopoly exists when one large firm can produce a product at a lower per unit cost than can smaller firms
a. True b. False Indicate whether the statement is true or false
Strategies and incentives:
A. do not change when the game is repeated. B. often work quite differently when games are repeated. C. work the same whether games are played once or repeated. D. None of these statements is true.
By reducing consumption expenditures, poor nations should be able to completely finance their own capital investment.
Answer the following statement true (T) or false (F)