The underlying reason large taxes create small revenues is ______.
a. a decrease in quantity exchanged
b. a maximization of efficiency
c. a gain in consumer surplus
d. an inability for supply to meet demand
a. a decrease in quantity exchanged
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What is the natural rate hypothesis?
What will be an ideal response?
Demand for a good becomes more elastic as:
a. the number of substitutes available declines. b. the time period under consideration becomes shorter. c. a good makes up a larger percentage of a consumer's budget. d. a good makes up a smaller percentage of a consumer's budget. e. the producer has more time to respond to price changes.
When electricity buyers and electric utility companies trade with one another, the electric utilities may generate electricity with a coal-burning power plant. This produces sulfur dioxide, nitrogen dioxide, particulates, and other air pollutants, which affect people who may not be among the buyers or sellers. This phenomenon is known as
A. mitigation. B. a negative externality. C. resource overuse. D. excess supply.
Normative economic statements
A) are statements of "what ought to be." B) are statements of "what is." C) are statements that may be tested by referring to facts and data. D) do not involve value judgments.