The introduction of a tax in a perfectly competitive marketplace that is originally in equilibrium will lower total surplus
a. True
b. False
Indicate whether the statement is true or false
True
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Fiscal policy is determined by
A) Congress and the Federal Reserve. B) Congress and the president. C) the president and the Federal Reserve. D) the Federal Reserve.
After reading Governor Bradford's account, which is the most accurate statement, given his experience?
a. He considered the problems in the colony to be rooted in the "sine and corruption" of selfishness. b. He agreed with Plato that goods held in a "commone wealth" would make the people "happy and flourishing." c. That assigning private plots of land "made all hands very industrious." d. That assigning private plots of land "for this communitie" caused "much confusion and discontent."
Which good would you expect to have a greater price elasticity: a gallon of gasoline sold at a specific gasoline station on Main Street in Phoenix, a gallon of gasoline sold in Phoenix, or a gallon of gasoline sold in Arizona? Why?
What will be an ideal response?
Decreasing government spending ______ the price level and ______ equilibrium real GDP.
a. decreases; increases b. increases; decreases c. increases; increases d. decreases; decreases