When taxes alter individual behavior as people attempt to avoid the tax, efficiency
a. losses are probable.
b. gains are possible.
c. gains are impossible.
d. losses are impossible.
a
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Open market sale of government securities by the Fed decreases the federal funds rate
Indicate whether the statement is true or false
The proliferation of the horse in the 17th century caused Great Plains Indians to:
a. increase their reliance on agricultural work. b. engage in less tribal warfare. c. use smaller and more independent hunting groups. d. kill fewer bison, but make more intensive use of the meat on the carcass.
Which of the following is true of an option?
a. It is based on market volatility and thus assures a high profit to risk preferring individuals. b. It provides the holder the right (but does not obliges him/her) to buy or sell a certain quantity of an underlying asset before its expiration. c. The greater the volatility of the underlier's price the less likely that the option will go "in the money" before it expires. d. Options help individuals to minimize their business risks by transferring it to others for a fixed time interval.
Suppose the wage rate in the labor market is $8 and more people entered the labor force, which of the following statements is correct?
A. If wages are sticky, the unemployment rate stays the same. B. If wages are flexible, then wages will increase. C. If wages are sticky, the unemployment rate increases. D. If wages are flexible, the unemployment rate increases.