Which of the five goods, A to E, whose price elasticities of demand are shown in the choices below, is the best candidate to tax if the goal is to acquire maximum tax revenue?
a. good A, with price elasticity of 0.90
b. good B, with price elasticity of 3.40
c. good C, with price elasticity of 1.25
d. good D, with price elasticity of 0.50
e. good E, with price elasticity of 1.00
D
Economics
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Vouchers create the efficient outcome only if production is such that the marginal social cost
A) exceeds the marginal private benefit. B) equals the marginal external benefit. C) equals the marginal social benefit. D) is decreased so it equals the marginal private cost.
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Cash should be deposited weekly so it can be counted several times before being sent to the bank.
a. true b. false
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