1. The Ramsey Rule implies that goods be __________ in consumption.
Aunrelated
Bequal
Copposite
Dmoderate
2. "For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to elasticities." This is the definition of
Athe benefits-received principle.
Bthe Ramsey Rule.
Cthe second best principle.
Dthe inverse elasticity rule.
3. A time endowment i
Athe number of hours in a day.
Ba gift of time that a person receives.
Cthe maximum number of hours in a year that a person can work.
Dthe largest amount of time that can be spent at leisure.
Eall of the above.
