For a good that is taxed, the area on the relevant supply-and-demand graph that represents government's tax revenue is
a. smaller than the area that represents the loss of consumer surplus and producer surplus caused by the tax.
b. bounded by the supply curve, the demand curve, the effective price paid by buyers, and the effective price received by sellers.
c. a right triangle.
d. a triangle, but not necessarily a right triangle.
a
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"The rich should pay higher income tax rates than the poor" is an example of a
A) normative statement. B) positive statement. C) descriptive statement. D) theoretical statement.
Phillip is a mortgage broker, who is paid by commission. When interest rates decline, he does a lot of business and earns a lot of money, as more people buy houses or refinance their mortgages. But when interest rates rise, business falls substantially. To diversify, Phillip should choose investments that
a. provide a higher return than the market average. b. provide a lower return than the market average. c. pay higher returns when interest rates rise and lower returns when interest rates fall. d. pay lower returns when interest rates rise and higher returns when interest rates fall.
Suppose that the wage for musicians decreases relative to other occupations. We know that ________ people will work in music, and the total number of hours worked will ________.
A. more; increase B. more; decrease C. fewer; increase D. fewer; decrease
Labor productivity can increase even if the labor force increases.
Answer the following statement true (T) or false (F)