Consider a Good to Which a Per-Unit Tax Applies

question 25

Multiple Choice

Consider a good to which a per-unit tax applies.The size of the deadweight that results from the tax is smaller,the

• A)less elastic is the demand for the good.
• B)less elastic is the supply of the good.
• C)smaller is the amount of the tax.
• D)All of the above are correct.

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Definitions:

Conservative Economist

An economist whose work typically emphasizes free market policies, limited government intervention, and fiscal conservatism as means to achieve economic growth and stability.

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President Harry S. Truman’s program announced in 1947 of aid to European countries—particularly Greece and Turkey—threatened by communism.

Cold War

A period of geopolitical tension between the Soviet Union and the United States from the late 1940s to 1991, marked by espionage, political rivalry, and the threat of nuclear warfare.

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A seven-car exhibit train that toured the United States from 1947 to 1949 to promote American history and ideals.