If the government is most interested in minimizing excess burden of an excise tax, should it impose the tax on goods that are elastic or on goods that are inelastic?
What will be an ideal response?
If the government wants to minimize the excess burden of excise taxes, the taxes should be imposed on goods whose demand is inelastic.
Economics
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Real income and money income are the same concept
Indicate whether the statement is true or false
Economics
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost of a pair of shoes is __________ for the United States than Canada, so Canada has the ______________ advantage in shoe production.
A. higher; comparative B. lower; comparative C. higher; absolute D. lower; absolute
Economics