One reason that deadweight losses are so difficult to avoid is that
a. taxes affect the decisions that people make.
b. income taxes are not paid by everyone.
c. consumption taxes must be universally applied to all commodities.
d. the administrative burden is hard to calculate.
a
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The full-employment and full-adjustment level of real Gross Domestic Product (GDP) in the economy is represented by
A) the horizontal line at the price level. B) the LRAS curve. C) the distance between the LRAS curve and the AD curve. D) the AD curve.
The demand for loanable funds is the relationship between loanable funds and the ________ other things remaining the same
A) real interest rate B) nominal interest rate C) inflation rate D) price level
Which of the following best defines what the long run for a business is?
A. more than one year B. the time to make necessary business decisions C. the period of time during which at least one input is fixed D. the period of time during which all inputs are variable
Because marginal cost is always ________ in the short run, total variable cost always ________ when output increases.
A. positive; decreases B. negative; increases C. negative; decreases D. positive; increases