The deadweight loss of a specific tax will be a small share of the tax revenue collected if:
A) supply is more inelastic than demand.
B) demand is more inelastic than supply.
C) supply and demand are both elastic.
D) supply and demand are both inelastic.
D
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In the short run, a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and increases real GDP
Indicate whether the statement is true or false
One of the main causes of economic inequality in Latin America is the
A) failure of governments to support urban consumers. B) lack of progress in raising agricultural productivity. C) lack of governmental interest in solving the problem of inequality. D) focus of governments on agricultural exports to the detriment of food production. E) oil crisis of the 1970s.
An example of an intermediate good would be a(n)
A. paper used in this edition of the textbook. B. the appliance you use to heat up your lunch.. C. the used car you purchase. D. the suit you purchased on Black Friday and wore for New Year’s Eve.
When macroeconomic policies are not coordinated,
A) macroeconomic policies will not be effective. B) expansionary policies in one country are likely to increase global imbalances. C) worldwide recessions are likely. D) low-income countries cannot grow.