The more elastic demand is for a taxed good, the smaller the excess burden associated with the tax.
Answer the following statement true (T) or false (F)
False
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When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of a spending program, such as new interstate highway construction, the:
a. tax, then, generates a $100 million decline in real GDP. b. level of real GDP expands by $100 million. c. effect on real GDP is uncertain. d. tax multiplier overpowers the income multiplier, triggering a rollback in real GDP.
Suppose James and Katherine are successful in establishing a profitable market for their "ghost restaurants" in what is a monopolistically competitive industry. In the long run, James and Katherine will most likely find it ________ to remain profitable
as they face ________ competition in the "ghost restaurant" market. A) harder; more B) harder; less C) easier; more D) easier; less
The goal of the firm is
A) low labor turnover. B) to maximize sales. C) to minimize costs. D) profit maximization.
A job advertised in an industry publication rather than a local newspaper is an attempt to
A) use access to the industry publication as a screening mechanism. B) use access to the newspaper as a screening mechanism. C) use access to the industry publication as a means of statistical discrimination. D) use access to the newspaper as a means of statistical discrimination.