The Mayor of Stuckeyville is considering increasing the tax on bowling. He is confident that tax revenues will increase but recognizes the possibility that they may decrease. The mayor is engaging in

A. a policy that will cause the tax base to increase.
B. a policy that will cause the tax base to remain unchanged.
C. dynamic tax analysis.
D. static tax analysis.

Answer: C

Economics

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Refer to the figure above. When the demand curve for gas is D1 and the supply curve for gas is S, the equilibrium price is:

A) $3. B) $5. C) $6. D) $8.

Economics

Loud music from a neighbor's party is

A) a negative externality whether or not you like it. B) a positive externality whether or not you like it. C) a positive externality if you like the music, and a negative externality if you don't. D) a negative externality if you like the music, and a positive externality if you don't. E) not an externality.

Economics