The deadweight loss from a tax
A) is the tax revenue the government collects when people die.
B) is the split of a tax between the amount paid and the amount collected.
C) equals the amount collected as revenue from the tax.
D) is called the excess burden of the tax.
E) equals the amount collected as revenue from the tax plus the excess burden of the tax.
D
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A perfectly competitive firm's long-run supply curve is that part of its MC curve that lies above the point where MC = AVC
Indicate whether the statement is true or false
Money that can be easily separated into smaller units of value has the characteristic of _____.
(A) Exchange (B) Denominations (C) Durability (D) Divisibility
Economists before the 1940s were most likely to call a rise in asset prices inflation, as long as it is accompanied by an increase in:
A. a price index. B. GDP. C. goods inflation. D. the money supply.
Monopolistically competitive industries are inefficient because:
A. they realize diseconomies of scale. B. advertising costs retard technological advance and product development. C. they are overpopulated with firms whose plants are underutilized. D. monopolistically competitive sellers engage in misleading advertising.