If the Government Wants to Generate Large Revenues from Placing

question 27

Multiple Choice

If the government wants to generate large revenues from placing a tax on the consumption of a particular good, it should choose a good for which

• A) the demand is price elastic
• B) the demand is unitary elastic
• C) the demand is price inelastic
• D) there are many good substitutes available for the good

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Definitions:

Careful Manner

Conducting activities with diligence and attention to avoiding harm or errors.

Driving While Impaired

The act of operating a vehicle under the influence of alcohol, drugs, or other substances that impair cognitive and motor skills.

Occupiers' Liability Act

Legislation that defines the duty of care owed by individuals or entities that control premises towards those who enter them.

Legal Duty

An obligation arising from law that requires an individual or entity to conform to a standard of conduct.