If the government's goal is to generate a certain amount of tax revenue, a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare
Indicate whether the statement is true or false
False. The ad valorem tax will reduce output and consumer surplus by less than the specific tax would.
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The "Classical Dichotomy" refers to:
a. a distinction between "value in use" and "value in exchange." b. separate theories of demand and supply. c. the possibility of Giffen's Paradox. d. determination of relative prices independent of the nominal price level.
Direct controls often require long legal proceedings before they can be effective.
Answer the following statement true (T) or false (F)
GDP does not directly include:
a. the value of final goods and services produced, but not sold, during a period.
b. the value of services rendered during a period
c. the value of intermediate goods sold during a period.
d. any of the above.
Suppose you borrow $500 from your bank to pay for a guitar. This is an example of
A) direct financing. C) moral hazard. B) indirect financing. D) transaction costs.