A wage tax in a labor market with a perfectly inelastic labor supply curve is efficient.
Answer the following statement true (T) or false (F)
False
Rationale: Such a labor supply curve has offsetting substitution and wealth effects -- with the substitution effect giving rise to a deadweight loss from a wage tax.
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An economy with only the household and firm sectors is called:
A) a mixed economy. B) a private economy. C) a command economy. D) none of the above.
Which of the following produces the securities that the Fed buys and sells on the open market?
a. Board of Governors b. Treasury Department c. Federal Open Market Committee d. Department of Commerce e. District Federal Reserve Banks
If the four-firm concentration ratio in an industry increases, the industry
A. must have become more competitive. B. must have become a monopoly. C. must have become less competitive, although not necessarily a monopoly. D. may or may not have become less competitive.
Points on the utility possibility frontier are
A. inefficient. B. points of incomplete preferences. C. not producible. D. Pareto.