When Reading Published Statistics (Numerical Facts), You Should

question 5

Multiple Choice

When reading published statistics (numerical facts) , you should

• A) never believe what you read, because all statistics are lies.
• B) only believe those statistics that are adequately supported.
• C) believe what you read, because they wouldn't be published if they weren't correct.
• D) only believe those statistics that are presented in so-called quality publications.

Understand the concept of deadweight loss and its causes in the context of taxation.

Analyze the impact of elasticity of demand and supply on the magnitude of deadweight loss.

Recognize the relationship between tax rates and government revenue, including the Laffer curve implications.

Identify key characteristics of labor market responses to taxation.