Which of the following would likely cause the greatest deadweight loss?
a. a tax on cigarettes
b. a tax on salt
c. a tax on cruise line tickets
d. a tax on gasoline
c. a tax on cruise line tickets
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The equilibrium level of real GDP is $5,000 billion, the full employment level of real GDP is $6,000 . and the marginal propensity to consume (MPC) is 0.90 . Which of the following statements is true?
a. A recessionary gap exists equal to $100 billion. b. The full employment target could be reached if government increased its spending by $100 billion. c. Both of the above statements are true. d. Neither of the above statements are true.
Statistical discrimination is legal under the disparate impact standard but illegal under the treatment standard
a. True b. False Indicate whether the statement is true or false
What is calculated as MP x P?
a. revenue gained from the output of an additional worker b. increase in costs associated with an increase in labor c. change in output associated with a change in input d. market price (value) of the company’s total output
Suppose an economy can produce a maximum of 10 units of good X and the opportunity cost of 1X is always 2Y. What is the maximum number of units of good Y the economy can produce?
What will be an ideal response?