The deadweight loss of taxation on a good is higher if ________
A) the demand or the supply of the good is relatively price elastic
B) a progressive tax system is practiced
C) a low rate of tax is imposed on the sale of the good
D) there is only one seller in the market
A
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Suppose a monopolistically competitive firm's output where marginal revenue equals marginal cost is 66 units and the price corresponding to this quantity is $18. If the average total cost at this output is $16.55, then its total profit is
A) $1,188. B) $1,092.30. C) $95.70. D) $1.45.
For each of the following changes, explain what will happen to the expected marginal product of capital curve or the user cost of capital curve, and what will happen to the desired capital stock:
a. The real price of capital goods increases. b. The depreciation rate increases. c. The corporate income tax rate decreases. d. The real interest rate decreases. e. Expected future output decreases.
Information gathering for an adverse selection happens
a. Before the agent is hired b. After the agent is hired c. After the agent is fired d. None of the above
When there is an increase in the wages the banking industry offers accountants, what happens to the supply of accountants available to other industries?
A) The supply to other industries increases. B) The supply to other industries falls. C) The supply curve for other industries shifts to the right. D) no change