When spending by the federal government exceeds net taxes, _____
a. the price level tends to fall
b. the money supply must fall
c. the aggregate demand curve shifts rightward
d. aggregate supply moves rightward
e. there is a federal budget surplus
c
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A compulsory payment to government that is generally linked to engaging in some activity is referred to as a
A) tax. B) subsidy. C) deadweight loss. D) quota.
Sylvia wants to expand her taxidermy business and is going to use profits from the business to do so. This is an example of using ________ for her expansion
A) retained earnings B) direct finance C) dividends D) indirect finance
The most common way for workers to hold market power is when:
A. a monopsony exists. B. they are unionized. C. they compete for minimum wage. D. there are a lot of them.
Suppose that the market for product X is characterized by a typical, downward-sloping, linear demand curve and a typical, upward-sloping, linear supply curve. If a $2 tax per unit results in a deadweight loss of $200, how large would be the deadweight loss from a $4 tax per unit?