At equilibrium, deadweight loss is zero.
Answer the following statement true (T) or false (F)
True
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In the 1990s Japan had the lowest interest rates in the world due to a combination of
A) inflation and recession. B) deflation and expansion. C) inflation and expansion. D) deflation and recession.
How can tariffs lead to a situation in which all parties to a trade lose?
Dr. Rand earns $420,000 per year. He is charged a 20% tax on the first $100,000 he earns. He is charged a 30% tax for any income he earns between $100,000 and $250,000, and he is charged a 38% tax on anything he earns over $250,000. How do we find his marginal tax rate?
a. Add 20% of $100,000, 30% of $150,000, and 38% of $170,000, and then divide the total by $420,000. b. Look at the percentage rate he would pay on his last dollar of income, which is 38%. c. Look at the percentage rate he would pay on $1, which is 20%. d. Add 20%, 30%, and 38%, divide by three, and multiply that amount times $420,000.
The behavior of profit-maximizing producers is guided by
A. Philanthropy. B. Social costs. C. Self-interest. D. Aesthetic concerns.