Taxes cause deadweight losses because taxes
a. reduce the sum of producer and consumer surpluses by more than the amount of tax revenue.
b. prevent buyers and sellers from realizing some of the gains from trade.
c. cause marginal buyers and marginal sellers to leave the market, causing the quantity sold to fall.
d. All of the above are correct.
d
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In which of the following periods was the yield curve inverted?
A) February 2004 B) February 2007 C) February 2010 D) The yield curve was not inverted during any of these periods.
The Bureau of Labor Statistics surveys consumers to determine a fixed basket of goods
a. True b. False Indicate whether the statement is true or false
When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier
Indicate whether the statement is true or false
Which of the following has not occurred in the United States over the last two decades?
A. A fall in real wages B. An increase in labor-force participation C. Growth in service sector employment D. A decrease in the wage differentials between colleges grads noncollege grads.