Which of the following statements is correct regarding a tax on a good and the resulting deadweight loss?
a. The greater are the price elasticities of supply and demand, the greater is the deadweight loss.
b. The greater is the price elasticity of supply and the smaller is the price elasticity of demand, the greater is the deadweight loss.
c. The smaller are the decreases in quantity demanded and quantity supplied, the greater the deadweight loss.
d. The smaller is the wedge between the effective price to sellers and the effective price to buyers, the greater is the deadweight loss.
a
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This monopolist is
A. in the short run making a profit.
B. in the short run taking a loss.
C. in the long run making a profit.
D. in the long run making a loss.
Aggregate supply describes the behavior of
What will be an ideal response?
A potential problem with piece-rate plans is that:
A. workers have no incentive to work hard. B. workers will produce a large quantity. C. workers may stress quantity instead of quality. D. it is difficult for managers to control.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.