If government officials are mainly interested in generating tax revenue, then they should tax goods for which demand is price inelastic.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Using fiscal policy to stabilize the economy is difficult because
A. there are time lags involved in the use of fiscal policy. B. the effects of policy changes are known with certainty. C. the size of the government debt doesn't matter. D. potential income is known.
The Social Security Act was passed:
a. in 1955. b. just after World War II. c. in 1935. d. in 1964.
Which of the following statements is true?
a. The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making. b. In capitalism income is distributed on the basis of need. c. Adam Smith was the father of socialism. d. Most real-world economies are mixed economic systems. e. The "invisible hand" refers to government economic control.
Refer to the information above. The real exchange rate (from the United States' perspective) is
A) .625. B) .8. C) 1.6. D) 2.0. E) none of the above