Eggs have a supply curve that is linear and upward-sloping and a demand curve that is linear and downward-sloping. If a 2 cent per egg tax is increased to 3 cents, the deadweight loss of the tax
a. increases by exactly 50 percent.
b. increases by less than 50 percent and may even decline.
c. increases by more than 50 percent.
Answer: c. increases by more than 50 percent.
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An implication of the return-to-entrepreneurship curve is that:
A) for a relatively lower return, there will be more entrepreneurs with at least that return. B) all entrepreneurs in an economy with inclusive institutions have exactly the same return. C) all entrepreneurs in an economy with extractive institutions have exactly the same return. D) for a relatively lower return, there will be fewer entrepreneurs with at least that return.
In the above table, the relationship between x and y is ________ and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to ________
A) negative; 8 B) negative; 6 C) positive; 5 D) positive; 3
Primary liabilities of the Federal Reserve include
a. Federal Reserve notes. b. U.S. government securities. c. loans to banks. d. reserve deposits by banks. e. Both a and d
If demand is price elastic, a decrease in price causes:
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue. d. an increase in quantity, but anything can happen to revenue.