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

---

Definitions:

Passing Score

The minimum score required on a test or examination to be considered successful or to achieve a certain certification or qualification.

Data Label

A Data Label is a descriptive text used in charts and graphs to provide specific information about a data point, such as the value or category name.

Legend

A key or explanation that accompanies a map, chart, or other graphical representation, detailing the symbols used.

DATE Function

A function in many programming languages and databases used to return the current date or convert a string to a date format.