The lump sum principle suggests that the tax that reduces utility the least is
a. a tax on income
b. a tax on a good with many substitutes
c. an equal tax per-unit on all goods
d. a tax on a good with only a few substitutes
a
Economics
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold
A) the deadweight loss is equal to economic surplus. B) producer surplus equals consumer surplus. C) marginal benefit is less than marginal cost. D) the marginal benefit of each of the 10,000 units of iced tea equals $3.
Economics
Comment on the following: "Present-biased people are impatient, but impatient people don't necessarily have to be present-biased."
What will be an ideal response?
Economics