When demand is relatively elastic, the deadweight loss of a tax is larger than when demand is relatively inelastic
a. True
b. False
Indicate whether the statement is true or false
True
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Firemen generally are paid higher wages because
a. they are usually highly educated b. they are usually working under riskier conditions c. they are working long and uncertain hours d. both B&C
During periods of inflation:
a. everyone's real income rises. b. those people who have fixed incomes benefit. c. those people whose nominal income rises faster than the general price level benefit. d. those people who enter long-term wage agreements benefit. e. those people who hold a lot of cash benefit.
Using the UIP equation, what would happen to the spot rate for euros if the dollar-euro exchange rate is expected to appreciate in the future?
a. The spot rate to purchase euros would rise (dollar depreciation). b. The spot rate to purchase euros would fall (dollar appreciation). c. The spot rate to purchase euros would remain unchanged. d. The spot rate to purchase euros would remain unchanged today, but rise in the future (dollar depreciation)
Over the past several decades there has been rapid growth in international trade. This growth has been due to all but one of the following factors. Which factor has not contributed to the growth of international trade?
A) the spread of reliable communications B) an increase in the tariffs charged on many goods C) a reduction in shipping costs D) favorable changes in government policies