Government Revenue from an Excise Tax of a Given Amount

question 1

True/False

Government revenue from an excise tax of a given amount is greater when demand is relatively inelastic than when it is relatively elastic.

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Definitions:

Displacement

In psychology, a defense mechanism where negative emotions are transferred from the original source to a safer or less threatening target.

Severe Anxiety

A debilitating mental health condition characterized by extreme fear, worry, and unease that significantly impacts daily functioning.

Positive Self-talk

The practice of making affirming and encouraging statements to oneself to boost confidence and well-being.

Diazepam (Valium)

A prescription medication belonging to the benzodiazepine class, commonly used to treat anxiety, seizures, and muscle spasms.