Answer: D) they lower the surplus in the market.
Taxes may cause deadweight losses because __________.
A) they increase consumer surplus at the expense of producer surplus.
B) they transfer purchasing power from buyers to the government.
C) they transfer purchasing power from sellers to the government.
D) they lower the surplus in the market.
Economics
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Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. For which bond is the yield and the coupon rate the same?
A. Bond A B. Bond B C. Bond C D. Bond D E. Bond E
Economics
The division of labor
a. allows more people to be employed b. allows tasks to be performed more efficiently c. makes people happier on the job d. means that less management is required e. means that less equipment will be used
Economics
Suppliers recognize there is a shortage in the market for their product when they notice that
a. the quantity supplied exceeds the quantity demanded b. the quantity demanded is falling c. inventories are falling d. production exceeds new orders for the product e. government economists announce a shortage exists
Economics
A firm is producing a joint product, Product A and Product B, with variable proportions. At its current production levels, the marginal benefit of producing Product A is $3 and the marginal cost is $2 and the marginal benefit of producing Product B is $4 and the marginal cost is $5. To maximize profits, the managers of the firm should produce ________ of Product A and ________ of Product B.
A) more; less B) more; more C) less; more D) less; less
Economics