Corrective taxes differ from most taxes in that corrective taxes
a. reduce economic efficiency.
b. do not raise revenue for the government.
c. do not cause deadweight losses.
d. always result in a high burden on sellers of goods to which the corrective tax applies.
c
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Discretionary fiscal policy is handicapped by
A) lawmaking time lags, induced taxes, and automatic stabilizers. B) lawmaking time lags, estimation of potential GDP, and economic forecasting. C) economic forecasting, lawmaking time lags, and induced taxes. D) automatic stabilizers, lawmaking time lags, and potential GDP estimation. E) automatic stabilizers, the multipliers, and potential GDP estimation.
In game theory, an example of a payoff could be:
A. being the first mover in a game. B. sharing information with a select few that others aren't privy to. C. monetary gains made by a player. D. giving an advantage to only one player.
The declared purpose of antitrust policy is to promote competition, yet some would say it actually may prevent competition. Explain the two sides of the debate.
What will be an ideal response?
Knowing that in the real world, the demand for goods and services could change unexpectedly, firms would attempt to deal with it by:
A)Producing different levels of goods and services according to the changes in demand B)Switching to the production of another product in the short-run C)Closing down the production in the short-run with the hope that the situation would change in the future D)Maintaining an inventory