Deadweight loss is the
a. decline in total surplus that results from a tax.
b. decline in government revenue when taxes are reduced in a market.
c. decline in consumer surplus when a tax is placed on buyers.
d. loss of profits to business firms when a tax is imposed.
a
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If the Fed sells foreign assets, the monetary base will
A) fall by the amount of the sale, only if the Fed buys domestic bank deposits with the proceeds. B) fall by the amount of the sale, only if the Fed buys domestic currency with the proceeds. C) fall by the amount of the sale, whether the Fed buys domestic bank deposits or domestic currency with the proceeds. D) rise by the amount of the sale.
Oligopolies can result from any of the following EXCEPT
A) economies of scale. B) vertical mergers. C) government regulation. D) diseconomies of scale.
A decrease in the interest rate, other things being equal, causes a (an):
a. leftward shift of the demand curve for money. b. rightward shift of the demand curve for money. c. downward movement along the demand curve for money. d. upward movement along the demand curve for money.
A group of three plants that is owned and operated by a single firm and that consists of a farm growing wheat, a flour-milling plant, and a plant that bakes and sells bread would best be an example of a:
A. horizontally integrated firm. B. conglomerate. C. vertically integrated firm. D. multiplant firm.