The state of Florida is considering putting an excise tax on either good X or good Y. An economist discovers the supply of good X is more elastic than the supply of good Y, while the demand elasticities are identical. Which good should Florida tax in order to minimize the deadweight loss of the tax?
The state of Florida should tax good Y. The deadweight loss of the tax increases when supply is more elastic since more potential trades will not be completed.
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Compared to the Erie Canal, the primary disadvantage of Pennsylvania canals was
a. state government resistance to providing funds for canal building. b. the steep, mountainous terrain of Pennsylvania. c. a pre-existing network of railroads in Pennsylvania. d. lack of adequate rainfall in Pennsylvania.
The labor supply curve facing a monopsonist is:
a. downward sloping. b. upward sloping. c. a horizontal line. d. backward bending. e. a vertical line.
On January 1, 2008, Edward invested $10,000 at 5 percent interest for one year. The CPI on January 1, 2008 stood at 1.60. On January 1, 2009, the CPI was 1.76. The real rate of interest earned by Edward was ________ percent.
A. 5 B. -5 C. 10 D. 0
Which of the following statements is false?
A) Corporations can issue stocks and bonds, while proprietorships cannot. B) Corporations have one owner, while proprietorships have many owners. C) Corporations face more taxes than do proprietorships. D) Proprietorships have unlimited liability while corporations have limited liability.