Deadweight losses occur in markets in which
a. firms decide to downsize.
b. the government imposes a tax.
c. profits fall because of low consumer demand.
d. equilibrium prices fall.
b
You might also like to view...
Refer to the scenario above. After the implementation of the tax, Thomas's expenditure on wine will:
A) remain the same. B) increase by $50. C) decrease by $50. D) increase by $100.
Suppose an MNC subsidiary buys 100 input units from its parent at a price of $2 each. It has $300 in additional production costs, and sells its 100 units of output for $6 to the MNC. It pays a 25% local profit tax
The MNC sells the output at home for $8, and its cost of producing inputs is $1 . It pays a profit tax of 20% at home on repatriated profits. What is the subsidiary net profit? Assume no selling costs at home. What is the MNC's total profit from the operation?
The Federal Reserve System is
a. controlled by the Department of the Treasury. b. the central bank for the United States. c. completely similar to the Bank of England. d. All of the above are correct.
Why are the following included in the broader definition of supply known as M2? (a) money market deposit accounts (b) money market mutual funds (c) savings accounts
What will be an ideal response?