One way to minimize the excess burden resulting from a specific tax is to:
a. tax only wealthy firms and individuals.
b. spread the tax over many goods and services.
c. tax goods for which either supply or demand is inelastic.
d. tax luxury items such as yachts and sports cars.
c
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Refer to Table 9-14. The real average hourly earnings for 1965 in 2010 dollars equal
A) $3.87. B) $5.80. C) $12.10. D) $18.14.
Which of the following statements is true about the total utility provided by a good?
a. Total utility can never be negative. b. Total utility is maximized when marginal utility is maximized. c. Total utility continues to increase as more of the good is consumed. d. Total utility is maximized when marginal utility is zero (for total utility > 0). e. Total utility is maximized when marginal utility is zero (for total utility < 0).