The dead-weight loss from an excise tax:
a. is the difference between consumer surplus and producer surplus.
b. is greater if demand is perfectly inelastic.
c. is of little concern to policy makers since all excise taxes are "sin" taxes.
d. is the lost surplus that results from higher prices and lower output resulting from the tax.
e. is caused by a shift in consumer preferences when the tax is raised.
e. is caused by a shift in consumer preferences when the tax is raised.
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Because resources are limited
A) people must make choices. B) firms will be forced out of business. C) only the very wealthy can get everything they want. D) the availability of goods will be limited but the availability of services will not.
The table above gives information about the economy of Spain. If the growth rate in 1998 is maintained, real GDP will double in ________ years
A) 10 B) 18 C) 19 D) 4 E) 25
For which of the following reasons is VAT considered a very important revenue generator for a government?
a. It is regressive in nature b. It targets only individuals in the high income class c. It cannot be avoided by individuals d. It boosts a country's export e. It lowers a country's import
Look at the following data: The structural unemployment rate is 4 percent, the natural unemployment rate is 5 percent, and the cyclical unemployment rate is 3 percent. The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.
a. 2; 7 b. 2; 8 c. 1; 7 d. 1; 8