Assume that there is no way to prevent someone from using an interstate highway,

Question

Assume that there is no way to prevent someone from using an interstate highway, regardless of whether or not he or she helps pay for it. This characteristic is associated with:

      rival goods.
                                        complementary goods.
                                        public goods.
                                        capital goods.
              

              

A state government wants to increase the taxes on cigarettes to increase tax revenue.

This tax would only be effective in raising new tax revenues if the price elasticity of demand is:                   

              

If there are external or spillover benefits associated with consumption and production of a product, it can be said that the:                                                 government should consider placing a special tax on producers.
                                        government should consider prohibiting the production of the commodity.
                                        supply curve for the product lies too far to the right to provide an efficient allocation of resources.
                                        demand curve understates the total benefit from the product and resources are underallocated to its production.

Explanation / Answer

complementary goods.

demand curve understates the total benefit from the product and resources are underallocated to its production.

perfectly elastic

elastic.

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