To raise the most tax revenue, governments should consider taxing goods with:
a. income elastic demands.
b. price inelastic demands.
c. income elastic demands.
d. income inelastic demands.
e. cross price elastic demands.
b
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In perfect competition, marginal revenue
A) increases as more is sold. B) decreases as more is sold. C) is equal to the market price. D) is zero. E) is always greater than marginal cost.
To state that the resources of the economy are finite implies that
a. we cannot live without them b. we always want more of them c. they are nonrenewable d. at least some of them are renewable e. there is a fixed quantity of them at any point in time
What do economists call the business practice of selling the same good at difference prices to different customers?
a. price discrimination b. collusion c. compensating differential d. Both a and b are correct
If the aggregate demand curve shifts in the short run moving the economy out of long-run equilibrium:
A. the short-run aggregate supply curve will shift to bring it back into long-run equilibrium. B. inflation will always occur. C. the aggregate demand curve will eventually shift back once expectations are taken into account. D. we will move along the short-run aggregate supply curve back to equilibrium.