If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:
a. is a non-essential.
b. has a highly elastic demand.
c. has many good substitutes.
d. has a highly inelastic demand.
e. has a unit elastic demand curve.
d
Economics
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The deficit can be defined in simple terms as
a. Tax receipts ? government expenditures + transfers. b. Tax receipts + government expenditures + transfers. c. Government expenditures + transfers ? tax receipts. d. Government expenditures ? transfers ? tax receipts.
Economics
When the economy is at its equilibrium GDP level, all of the following will occur, except:
A. Aggregate expenditures = GDP B. Inventories will be zero C. Saving equals planned investment D. There are no unplanned changes in inventories
Economics