While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes

An optimal corrective tax should be placed on _____

a. the sellers of the externality-generating activity b. the inputs into the externality-generating activity c. the externality-generating activity d. the purchasers of the output of the externality-generating activity

The economy's potential output is

a. the maximum output that could be achieved temporarily during a time of economic boom. b. the minimum output that could be achieved during a recession. c. present when 100 percent of the labor force is employed. d. the maximum sustainable output of the economy given its resources.