Inflation distorts the operation of our tax and financial system.
Answer the following statement true (T) or false (F)
True
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Over a period of years, many European countries replaced their transaction taxes with a value added tax. Give two reasons why this was done
What will be an ideal response?
Suppose an oil cartel has an agreement to restrict members' production in order to maintain a price of $30 per barrel. A single cartel member may want to cheat and exceed its quota so that it can:
a. reduce its costs. b. charge higher prices. c. make demand more inelastic. d. earn a bigger profit.
The demand curve facing a monopolist is
A. horizontal at the market price. B. identical to the market demand curve for the good. C. exactly twice as steep as the market demand curve for the good. D. vertical because there are no competitors.
A transfer payment is a government payment
a. to companies that provide goods or services to government agencies. b. designed to transfer funds from one government agency to another. c. which transfers revenue from the federal government to state government. d. not made in exchange for a good or service.