Suppose Tyler values a basketball at $20 . Jacqui values a basketball at $25 . The pre-tax price of a basketball $10 . The government imposes a tax of $5 on each basketball, and the price rises to $15 . The deadweight loss from the tax is
a. $25.
b. $15.
c. $10.
d. $0.
d
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If the production of a good causes pollution (an external cost), is the unregulated competitive market equilibrium of that product efficient?
What will be an ideal response?
The increase of the real money supply by 10% by the Federal Reserve when the unemployment rate rises by 1% is an example of
A) the conduct of procyclical monetary policy. B) the utilization of feedback policy rule. C) the utilization of rigid policy rule. D) the conduct of nondiscretionary fiscal policy.
Betty's Bagels makes and sells bagels from their local bakery. If Betty's Bagels become more popular with local residents and the probability of selling additional bagels increases, Betty's expected marginal benefit curve from holding additional bagels in inventory will shift to the ________ and the profit-maximizing number of bagels to hold in inventory will ________.
A) right; decrease B) left; increase C) left; decrease D) right; increase
Margin calls are more likely to happen when markets are:
A. irrational. B. crashing. C. booming. D. stable.