If the government wants to raise tax revenue and shift most of the tax burden to the sellers, it would impose a tax on a good with a:
a. steep (inelastic) demand curve and steep (inelastic) demand curve.
b. steep (inelastic) demand curve and a flat (elastic) supply curve.
c. flat (elastic) demand curve and a steep (inelastic) supply curve.
d. flat (elastic) demand curve and a flat (elastic) supply curve.
c
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If a nation's real risk-free interest rate fell relative to foreign nations, it would cause the value of the domestic currency to _______ and net exports to ________ (fill in the missing blanks)
a. Fall; rise b. Fall, rise c. Remain unchanged; rise d. Rise; fall e. Remain unchanged; fall
The 2010 Health Care Reform Law, also known as "Obamacare", includes a part known as universal coverage which requires everyone to have health insurance. One reason for this is to address the problem of:
A. Moral hazard B. Externalities C. Adverse selection D. Public goods