Which of the Following Is Not a Reason Why Government

question 113

Multiple Choice

Which of the following is not a reason why government officials are willing to impose entry barriers?

• A)to raise revenue
• B)to encourage innovation which may improve the standard of living in the long run
• C)to increase economic efficiency
• D)to promote an equitable distribution of income

Understand the concepts of average and marginal tax rates and their application.

Grasp the impact of elasticity on the incidence of excise taxes.

Understand the principles of tax progressivity, regressivity, and proportionality.

Understand the various sources of government revenue.

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Definitions:

Demand Curve

A graphical representation showing how the quantity of a good demanded by consumers changes as its price changes, holding other factors constant.

Cross-Price Elasticity

Measures the responsiveness of demand for one good to a change in the price of another good.

Goods Relationship

Refers to the connections and interactions between various goods, including how the production, consumption, or value of one can affect another.

Negative

Referring to a situation or number less than zero, often indicating a deficit or a decrease in a quantitative measure.