An unintended effect of a new tax placed on the producers of good A may include
A) a higher price paid by the consumers of good A.
B) less consumers' surplus for the buyers of good A.
C) fewer workers employed in the production of good A.
D) all of the above
D
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What is the difference between accounting profit and economic profit?
What will be an ideal response?
If firms are protected by substantial barriers to entry, short-run profits can turn into long-run profits
Indicate whether the statement is true or false
If the real rate of interest is the same internationally, then the nominal interest rates differ solely by the expected inflation differential in two countries
Indicate whether the statement is true or false
The government can continuously issue new bonds to pay the interest on its outstanding bonds so long as
A) the real GDP growth rate exceeds the real interest rate. B) the real interest rate exceeds the real GDP growth rate. C) the real interest rate exceeds the nominal interest rate. D) the nominal interest rate exceeds the cost of borrowing.