If the tax on a good is doubled, the deadweight loss of the tax
a. increases by 50 percent.
b. doubles.
c. triples.
d. quadruples.
d
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The equation underlying the mainstream view of macroeconomics is
A. S = a ? bY. B. MV = PQ. C. C + I + G + NX = GDP. D. GDP = P × Q.
Which of the following is (are) price discrimination?
i. charging different prices based on differences in production cost ii. charging business flyers a higher airfare than tourists iii. charging more for the first pizza than the second A) i only B) ii only C) ii and iii D) i and iii E) i, ii, and iii
Money payments made by governments to individuals for which no services or goods are concurrently rendered are known as
A. government-inhibited payments. B. transfer payments. C. government-sponsored payments. D. black market payments.
All of the following are functions of the Federal Reserve System EXCEPT
A. to supply the economy with fiduciary currency. B. to act as the government's fiscal agent. C. to provide loans to developing countries. D. to hold depository institutions' reserves.