Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $175 . Rebecca and Susan agree on a price of $185 . Suppose the government imposes a tax of $30 on dog sitting. What is the deadweight loss of the tax?
a. the maximum value that Rebecca would pay for dog sitting
b. the $30 tax
c. the lost benefit to Rebecca and Susan because after the tax, Susan will not dog sit for Rebecca
d. the lost benefit to Rebecca of being unable to hire a dog sitter because Rebecca is the one who would pay the tax
c
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If the Fed fears a recession, it
A) decreases aggregate supply. B) buys government securities. C) sells government securities. D) decreases the quantity of money. E) decreases aggregate demand.
If England buys hockey sticks from Canada, then:
A. England has an absolute advantage over Canada in making hockey sticks. B. Canada has an absolute advantage over England in making hockey sticks. C. England has the comparative advantage over Canada in making hockey sticks. D. Canada has the comparative advantage over England in making hockey sticks.
Suppose that the price of an ounce of gold is 120 pesos in Mexico and 2,400 yen in Japan. Then the Japanese yen is worth two hundred times the value of a Mexican peso
a. True b. False Indicate whether the statement is true or false
Unlimited liability applies
a. to partnerships and sole proprietorships b. only to partnerships c. only to sole proprietorships d. only to corporations e. to corporations and partnerships