The Government Can Raise Tax Revenue and Increase Total Economic

question 47

Multiple Choice

The government can raise tax revenue and increase total economic surplus by taxing:

• A)goods that generate positive externalities.
• B)goods that generate negative externalities.
• C)luxury goods that are primarily consumed by wealthy individuals.
• D)goods whose supply and demand curves are highly elastic.

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Definitions:

Lie-detector Test

A procedure that attempts to determine if a person is telling the truth by monitoring physiological responses to questions, also known as a polygraph test.

EEG

Electroencephalography, a non-invasive method to record electrical activity of the brain used in medical and research settings.

Cultural Surveys

Research methods used to collect data on cultural practices, beliefs, and values through questionnaires or interviews.

Guilty-knowledge Test

A type of psychological assessment where the subject's physiological responses are measured while they are presented with information only a guilty person would know.