A tax has an excess burden whenever
a. people are unable to alter their behavior to avoid paying it.
b. government seeks to raise it.
c. it raises a great deal of revenue.
d. it induces people to change their behavior.
d
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The spread between price and marginal cost of an exhaustible resource must grow by the rate of interest so that
A) resource owners earn a profit. B) resource owners are willing to sell some of the resource in the future. C) the price of the resource remains constant in real terms. D) the marginal cost of extracting the resource declines.
William Julius Wilson ascribes "underclass" behavior to a distinct culture of poverty
Indicate whether the statement is true or false
Which of the following would not change the demand for automobiles?
A) a change in the price of gasoline B) a change in the cost of steel C) a change in the price of motorcycles D) a change in tastes
All other things unchanged, a higher exchange rate
A. reduces net exports and aggregate demand B. reduces net exports and increases aggregate demand C. increases net exports and aggregate demand D. increases net exports and reduces aggregate demand