A tax is progressive if it raises a greater fraction of total tax revenue every year.
Answer the following statement true (T) or false (F)
False
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When the market price rises, the consumers' consumer surplus ________. When the market price falls, the consumers' consumer surplus ________
A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases E) does not change; increases
In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal
A) $0, because 2,000 gloves per day is an efficient quantity of gloves to produce. B) $2,000. C) $5,000. D) $10,000.
Protectionism through anti-dumping laws blocks imports that are sold below the cost of production by imposing ___________ that increase the price of these items to reflect their cost of production.
a. quotas b. tariffs c. standards d. sanctions
A firm invests in a new machine that costs $5,000 a year but is expected to produce an increase in total revenue of $5,200 a year. The current real rate of interest is 7%. The firm should
A. undertake the investment, because the expected rate of return of 10% is greater than the real rate of interest. B. not undertake the investment, because the expected rate of return of 4% is less than the real rate of interest. C. not undertake the investment, because the expected rate of return of 6% is less than the real rate of interest. D. undertake the investment, because the expected rate of return of 8% is greater than the real rate of interest.