Excess burden is the total burden of a tax minus the tax revenue generated by the tax.
Answer the following statement true (T) or false (F)
True
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Which of the following will hold true if the market for cameras is in equilibrium at a price of $40?
A) The quantity of cameras produced will equal the quantity of cameras bought in the market. B) Sellers of cameras will have an incentive to charge a price higher than $40. C) Buyers of cameras will want to buy fewer cameras than they are purchasing at equilibrium. D) If the cost of producing cameras falls below $40 per camera, all sellers will stop supplying cameras.
The indifference curves in the figure above (I1, I2, and I3 ) reflect Peter's consumption preferences. Which of the following combinations of goods does Peter prefer the most?
A) 48 slices of pizza and 12 chocolate bars B) 24 slices of pizza and 24 chocolate bars C) 40 slices of pizza and 20 chocolate bars D) 32 slices of pizza and 8 chocolate bars
Which of the following is an accurate statement concerning the definition of GDP?
a. The term given period refers to a three-year period of time. b. The term given period refers to a six month period of time. c. The word final means a good is ready to be used in the ultimate way that has been planned. d. The word final means a good is ready to be packaged and shipped to retail stores.
Assume there is no government or foreign sector. If the multiplier is 10, a $10 billion increase in planned investment will cause aggregate output to increase by
A. $1 billion. B. $5 billion. C. $10 billion. D. $100 billion.