If government removes two people from a prisoner's dilemma setting (and, in the process, requires that the two persons pay taxes for the service that government provides), it holds that on net
A) each of the two persons is better off.
B) each of the two persons is worse off.
C) one person is better off and the other person is worse off.
D) a, b, or c
E) none of the above
D
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A concentration ratio provides a better assessment of market power than the Herfindahl-Hirschman index does.
Answer the following statement true (T) or false (F)
When considering different tax levels, the revenue-maximizing point will be reached more:
A. slowly when demand is more elastic. B. quickly when demand is more elastic. C. quickly when demand is less elastic. D. quickly if demand is unit elastic.
An increase in real interest rates will increase saving and decrease aggregate demand, other things equal
a. True b. False Indicate whether the statement is true or false
Demand-pull inflation may be caused by:
a) An increase in costs b) A reduction in interest rates c) A reduction in government spending d) An outward shift in aggregate supply