Government revenue from an excise tax of a given amount is greater when demand is relatively inelastic than when it is relatively elastic
Indicate whether the statement is true or false
True . The tax will result in larger quantity sold the more inelastic demand is. Since the tax is on a per unit basis, the tax revenue is greater for the inelastic demand curve.
Economics
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The figure above shows the market for a good with an external benefit. If the government wants to grant a subsidy so that the efficient quantity is produced, the subsidy must equal ________ per unit
A) $100 B) $150 C) $250 D) $300 E) $50
Economics
If the interest rate on a security consists only of the riskless rate, then
A) there is no uncertainty. B) velocity is constant. C) the money supply is fixed. D) the price level is fixed.
Economics