An efficient tax system is one that imposes small deadweight losses and small administrative burdens

For each of the following pairs of products, discuss which of the two would be expected to be more price elastic and explain why.

i. water vs. diamonds ii. insulin vs. cough syrup iii. meat vs. filet mignon iv. gasoline right after a major hurricane vs. gasoline over that entire summer

The interest rate that commercial banks charge each other for very short-term loans is called the:

A. federal funds rate. B. prime rate. C. bank loan rate. D. Federal Reserve discount rate.