A commodity tax increases gains from trade.
a. true
b. false
Answer: b. false
You might also like to view...
If the number of automobile manufacturers decreases
A) the supply of automobiles increases. B) the demand for automobiles increases. C) the demand for automobiles decreases. D) the supply of automobiles decreases.
The Federal Reserve's ability to control the amount of demand deposits in the system depends on its ability to
A) clear checks. B) charter national banks. C) print currency. D) regulate bank reserves.
If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:
a. more than $10. b. less than $10. c. $10. d. $5300.
If the purchasing power of your savings is increasing over time, we know that:
A. the real rate of interest is positive. B. the inflation rate must be less than the nominal rate of interest. C. if the nominal interest rate is zero, inflation must be negative. D. All of these statements are true.