One cost associated with the imposition of taxes is:
A. deadweight loss.
B. scarcity.
C. shortages.
D. overconsumption.
A. deadweight loss.
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Referring to Figure 19.1, the peso is likely to appreciate if the exchange rate is either ________ or ________ pesos to the dollar
A) 10; 11 B) 11; 12 C) 12; 13 D) 13; 14
Which is not a reason the demand curve for loanable funds slopes down?
A. The value of the MRP in terms of today’s money shrinks as the interest rate rises. B. Future returns must be discounted more when the interest rate rises. C. As the interest rate rises, more and more investments become unprofitable. D. Production becomes more profitable in the future, reducing required inputs today.
The exchange rate is the:
a) cost of borrowing money. b) interest rate that banks charge their best customers. c) rate at which one currency can be exchanged for another. d) amount of gold backing a U.S. dollar.
Gamma has $30,000 of capital per worker, while Omega has $7,500 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will ________ in Omega compared to Gamma, holding other factors constant.
A. increase output less B. increase output by the same amount C. increase output more D. have no effect on output