Which of the following is true of taxes?
A) Taxes drive a wedge between what buyers pay and what sellers receive.
B) Business taxes generate government revenue without imposing a burden on consumers and households.
C) Increases in taxes are the primary cause of inflation.
D) Taxes increase the volume of mutually advantageous exchanges.
A) Taxes drive a wedge between what buyers pay and what sellers receive.
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In the table above, the Herfindahl-Hirschman Index in the widget industry is
A) 100 points. B) 742 points. C) 2842 points. D) 4182 points.
Economists have said that deregulation of the electric utility industry might lead to increased prices in the short run, but prices will fall in the long run. In this context:
a. the short run means the middle of next year. b. the short run means the period after all adjustments have been made, and the quantities of all resources have been varied as necessary. c. the long run means after all adjustments have been made, the quantities of all resources have been varied as necessary, and new market entrants begin producing electricity. d. the short run means the period after new firms begin producing electricity. e. the long run means approximately ten years.
Increasing worker productivity by creating economic incentives is an example of
a. laissez faire. b. supply-side economics. c. pump priming. d. Say’s Law.
When externalities are present, reaching an efficient outcome is especially difficult when the number of interested parties is large
a. True b. False Indicate whether the statement is true or false