When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has
a. increase efficiency
b. reduced the price buyers pay
c. generated no tax revenue
d. caused a deadweight loss
d. caused a deadweight loss
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If an economy imposes entry barriers to entrepreneurship:
A) the opportunity cost of entrepreneurship will increase. B) the number of entrepreneurs in the economy will increase. C) the aggregate output in the economy will increase. D) the opportunity cost of entrepreneurship will decrease.
Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease the required-reserve ratio C) buy Treasury bills D) decrease income taxes
?For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. After the loan has been made, individuals become careless with their finances
b. Individuals most likely to default are the ones most likely to apply for the loan
c. Borrowers investing their loan proceeds differently than the bank requires
d. None of the above
The general approach to obtaining fully robust standard errors and test statistics in the context of panel data is known as _____.
A. confounding B. differencing C. clustering D. attenuating