A principal benefit of inflation is that it makes economic decisions easier
a. True
b. False
Indicate whether the statement is true or false
False
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An alternative approach is to raise taxes on gasoline and other fuels. What is the economic intuition of this policy?
To promote cleaner air, the federal government in the United States enacted tax incentives for purchasing new electric vehicles or clean-fuel vehicles. These were scheduled to be phased out over time.
To have an effect on the market, a price floor should be set at a price
A. above the equilibrium price. B. equal to the equilibrium price. C. below the equilibrium price. D. at any price on the supply curve.
The above figure shows the supply curves in four different markets. If each of the markets has an identical downward sloping demand curve and the same tax is levied on suppliers, which market would produce the smallest amount of deadweight loss?
A) A B) B C) C D) D E) A and D
The above figure shows the market for steel ingots. What is the change in externality cost if the market switches from competitive equilibrium to social optimum?
A) a + b B) b + c C) c D) a + b + c