The amount of deadweight loss that results from a tax of a given size is determined by
a. whether the tax is levied on buyers or sellers.
b. the number of buyers in the market relative to the number of sellers.
c. the price elasticities of demand and supply.
d. the ratio of the tax per unit to the effective price received by sellers.
c
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Why do airlines tend to lower ticket prices in the winter?
A. Supply is relatively variable, and a drop in demand lowers equilibrium price B. Demand is relatively variable, and a drop in supply lowers equilibrium price. C. A drop in both supply and demand lowers equilibrium price. D. Supply is relatively fixed, and a drop in demand lowers equilibrium price. E. Demand is relatively fixed, and a drop in supply lowers equilibrium price.
A relationship that shows the technological possibilities for an economy as a whole is called a
A) production function. B) utility possibilities frontier. C) production possibilities frontier. D) budget constraint.
Taxes on wages, such as Social Security taxes, are known as ________
A) payroll taxes B) lump sum taxes C) capitol hill gains D) cost of living adjustments (COLAs)
In any country, the population will generally be better off as long as the ____ over time and population ____
a. quantity and quality of output decreases; does not increase faster than real output b. quantity and quality of output increases; increases faster than real output c. quantity and quality of output increases; does not increase faster than real output d. technology improves; increases faster than real output