If the tax on a good is increased from $1 per unit to $4 per unit, the deadweight loss from the tax increases by a factor of
a. 5.
b. 9.
c. 16.
d. 24.
c
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When a price support is set above the equilibrium price, producers ________ the quantity supplied and consumers ________ the quantity demanded
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) do not change; do not change
The exchange rate is
A) the price of one currency relative to gold. B) the value of a currency relative to inflation. C) the change in the value of money over time. D) the price of one currency relative to another.
When a construction firm chooses not to hire Jane as a carpenter simply because she is female, it is called: a. wage discrimination
b. job-entry discrimination. c. affirmative action. d. environmental factor discrimination.
A person prefers large and small levels of national defense to medium-sized levels of national defense. This person
A. is violating the law of transitivity. B. has single-peaked preferences. C. has multiple-peaked preferences. D. cannot achieve his or her most-preferred outcome.