A speculative bubble causes
a. current prices to sink artificially low.
b. current prices to rise artificially high.
c. no current price changes, only possible future changes.
d. undervaluing of stock prices.
b. current prices to rise artificially high.
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A tax is efficient if it imposes a large excess burden relative to the tax revenue it raises
Indicate whether the statement is true or false
The Malthusian model predicts that
A) population will keep increasing. B) the standard of living will keep increasing. C) health improvements increase the standard of living. D) population control improves the standard of living.
An essential point, among many, in the refutation of the "cheap foreign labor" argument is that
a. foreign workers have a lower standard of living. b. foreign workers are less productive. c. low foreign wages mean fewer exports for the United States. d. the United States does not benefit from cheap foreign labor so the goods should be kept out.
Cartels usually succumb to divisive forces caused by
A. limited information. B. members cheating by giving secret discounts. C. entry by new rivals seeking profits. D. insufficient profits compared to independent operations.