Deadweight loss
What will be an ideal response?
The reduction in total surplus that results from a tax
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If income increases from $50,000 to $60,000 while the demand for a good increases from 100 units to 125 units, what is the income elasticity of demand? Is the good a normal good or an inferior good?
What will be an ideal response?
If government regulators make the natural monopolist set price equal to marginal cost
A) the natural monopolist will make zero economic profits. B) the natural monopolist will make normal profits. C) the natural monopolist will make losses and go out of business. D) the natural monopolist will make positive economic profits larger than if it wasn't regulated at all.
People with less education are:
A. more likely to be unemployed than people with more education. B. less likely to be unemployed than people with more education. C. just as likely to be unemployed than people with more education. D. not comparable to people with more education.
The classical model assumes that
a. the supply of labor is fixed b. the stock of capital and technology are fixed c. the stock of capital and technology grows at a constant rate d. the supply of labor grows at a constant rate e. the supply of labor grows at an increasing rate.