The Text Defines a Major Source of Political Instability as

question 21

Multiple Choice

The text defines a major source of political instability as

• A) lack of democracy.
• B) low levels of economic development.
• C) intervention by international organizations.
• D) intervention by neighboring states.
• E) a lack of a strong sense of national identity, resulting in nationalist movements that challenge the established nation-state.

Comprehend the difference between elastic and inelastic demand.

Identify factors influencing elasticity of demand, including the availability of substitutes.

Understand the concept and significance of income elasticity of demand.

Grasp the concept of cross elasticity of demand and how it relates to substitutes and complements.

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Definitions:

Excess Burden

The amount by which the burden of a tax exceeds the total revenue collected. Also called deadweight loss.

Tax Revenue

The revenue collected by governments from taxes.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Excess Burden

The cost to society created by market inefficiency, particularly through taxation or other government policies, beyond the immediate financial effects.