To fully understand how taxes affect economic well-being, we must
a. assume that economic well-being is not affected if all tax revenue is spent on goods and services for the people who are being taxed.
b. compare the taxes raised in the United States with those raised in other countries, especially France.
c. compare the reduced welfare of buyers and sellers to the amount of revenue the government raises.
d. take into account the fact that almost all taxes reduce the welfare of buyers, increase the welfare of sellers, and raise revenue for the government.
c
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If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________
producer surplus, and ________ total surplus. A) import; increase; decrease; increase B) import; decrease; increase; increase C) export; increase; decrease; increase D) export; decrease; increase; increase E) export; decrease; increase; decrease
Give an example from your text of a nontariff measure that could reduce the quantity of imports or exports
What will be an ideal response?
The neoclassical growth model argues that the only way to increase growth in the long-run is
a. increase savings rates. b. reduce depreciation rates. c. reduce population growth. d. increase technology growth.
. In 2008, when the net worth of Trust Bank became negative, depositors made a beeline to withdraw their deposits. They feared that they might lose all of their deposits if they did not withdraw them. Given the macroeconomic dangers of such a situation, the government of the country decided to ensure that the depositors do not lose their money even if the bank goes bankrupt. The policy designed
by the government exemplifies _____. a. open market operations b. preferred risk policies c. deposit insurances d. quantitative easing