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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For a risk averse person, an increase in wealth brings ________ total utility of wealth and ________ marginal utility of wealth
A) higher; higher B) higher; lower C) lower; higher D) lower; lower
Economics
A contractionary fiscal policy
I. decreases a government budget deficit or increases a government budget surplus. II. includes tax cuts. III. may include discretionary cuts in transfer payments. A) I, II, and III B) I and II only C) I and III only D) II and III only
Economics