The deadweight loss of a tax is
a. the reduction in economic welfare of taxpayers that exceeds the revenue raised by the government.
b. the improved efficiency created as people reallocate resources according to the tax incentive rather than the true costs and benefits.
c. the loss in tax revenues.
d. Both a and b are correct.
a
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Many communist dictators ban the adoption of new technologies to:
A) enhance economic growth. B) discourage creative destruction. C) encourage creative destruction. D) reduce inequality in income.
If unplanned inventory changes are positive, what is the relationship between aggregate planned expenditure and real GDP?
What will be an ideal response?
Central banks often intervene in currency markets. This activity is called
A) managed floating. B) fixing exchange rates. C) currency warfare. D) super-pegging. E) flexible floating.
The limited savings of the poor is evidence of the flawed character of the poor
Indicate whether the statement is true or false