The inefficiency created by income taxation occurs due to
A) the cost of collecting taxes and making welfare payments.
B) motivating welfare recipients to work less.
C) motivating income earners to work less.
D) All of the above answers are correct.
D
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Should European nations which are not currently using the euro choose to adopt the euro as their currency, these countries would risk giving up the ability to use ________ to stabilize their economies in the event of a recession
A) contractionary fiscal policy B) expansionary monetary policy C) expansionary fiscal policy D) contractionary monetary policy
What is always true at the quantity where a firm's average total cost equals average revenue?
A) The firm's profit is maximized. B) Marginal cost equals marginal revenue. C) The firm breaks even. D) The firm's revenue is maximized.
A ban on imports, a tariff, or a quota raise the price to domestic consumers. This means that consumers will buy less of the product at a higher price. The loss associated with this is called
A) production associated loss. B) barrier associated loss. C) deadweight loss. D) trade loss.
Compared to those with less economic freedom, countries with more economic freedom generally have ____ per capita GDP levels and ____ growth rates
a. lower; less rapid b. lower; more rapid c. higher; less rapid d. higher; more rapid