Each increase in tax size results in ______.
a. an increase in revenue
b. an increase in demand
c. an increase in surplus
d. an increase in deadweight loss
d. an increase in deadweight loss
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An important reason why Ricardian equivalence may fail is if
A) borrowing and lending are done through intermediaries. B) government debt incurred today may not be paid off until after some current consumers are deceased. C) state and local governments also engage in debt finance. D) some consumers are borrowers, while other consumers are lenders.
Perfect competition is characterized by numerous firms.
Answer the following statement true (T) or false (F)
Who are likely to earn higher incomes, doctors or nurses, and why?
a. doctors, because their training is more expensive b. doctors, because their job has higher social status c. nurses, because their job is more desirable d. nurses, because their education is more costly e. doctors, because there are more job openings for them
Any point on a country's production possibilities frontier represents a combination of two goods that an economy
a. will never be able to produce. b. can produce using all available resources and technology. c. can produce using some portion, but not all, of its resources and technology. d. may be able to produce in the future with more resources and/or superior technology.