Government Wants to Maximize Its Tax Revenue and It Can

question 103

Multiple Choice

Government wants to maximize its tax revenue and it can only place a $2 per-unit tax on one of two goods. It should place the tax (on the production) of the good whose demand curve has the

• A)higher price elasticity of demand.
• B)lower price elasticity of demand.
• C)greater length.
• D)shorter length.
• E)a or c

---

Definitions:

Entrepreneurial Action

The initiative taken by entrepreneurs to launch new businesses or ventures, often in the face of risk, to capitalize on opportunities.

Right Mindset

The ideal mental attitude that allows individuals to face challenges, overcome obstacles, and achieve success.

Survival Rate

The percentage of individuals or entities that continue to exist or function after a specified period of time or after a particular event.

Family Businesses

Companies that are owned, managed, and operated by multiple generations of a family, often with the intention of passing the leadership to the next generation.