When a tax is imposed, the surplus that is lost to buyers and sellers but converted into tax revenue is:
A. considered a cost of taxation.
B. part of deadweight loss.
C. the sole source of deadweight loss.
D. not part of deadweight loss.
D. not part of deadweight loss.
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The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?
A) 30 cans of cola per chocolate bar B) 10 cans of cola per chocolate bar C) 3 cans of cola per chocolate bar D) 1/3 can of cola per chocolate bar
An increase in the real interest rate, all other things held constant, will cause a country's ________ to ________
A) current consumption: increase B) current consumption: decrease C) terms of trade; improve D) terms of trade; worsen E) welfare level; improve
Briefly explain how specialization and trade can benefit nations
What will be an ideal response?
The government has a budget deficit if
A) its total revenues are equal to its total expenditures. B) its total revenues are less than its total expenditures. C) its total revenues are greater than its total expenditures. D) the money supply is less than total expenditures.