In order to discourage consumers from eating unhealthy fast food, the government is considering placing a tax on all fast food sales. Which of the following statements is true?
A. The tax on fast food will likely increase the demand for home cooked meals.
B. A tax on fast food will only be effective if demand is perfectly inelastic.
C. The tax on fast food will likely raise considerable revenue but will be unlikely to reduce the consumption of fast food by consumers.
D. Given the numerous alternatives, consumers' demand for fast food is relatively inelastic and the tax will not likely work to discourage fast food consumption.
Answer: A
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Many ecologists argue that several species of whales are close to extinction. If this is TRUE, the reason is
A) inadequate enforcement of international laws. B) whales are a type of common property. C) the marginal benefit of hunting and killing a whale is greater than zero. D) whale-killing technology is too productive.
Which of the following is often referred to as the basic postulate of economics?
What will be an ideal response?
The 1996 Farm Act moved farming closer to the realities of the market system.
Answer the following statement true (T) or false (F)
A 50 percent tax on imports of Danish cheese is an example of:
A. a sanction. B. a tariff. C. a quota. D. a regulatory trade restriction.