The average cost of the distortion created by taxes
A) increases proportionately with the tax rate.
B) is lower when the tax rate is constant than when it fluctuates.
C) is higher when the tax rate is constant than when it fluctuates.
D) equals the square root of the tax rate.
B
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The GDP price index can be interpreted as
A) (nominal GDP - real GDP) ÷ 100. B) (real GDP ÷ nominal GDP) × 100. C) (real GDP - nominal GDP) ÷ 100. D) (nominal GDP + real GDP) ÷ 100. E) (nominal GDP ÷ real GDP) × 100.
The above figure illustrates a perfectly competitive firm. Curve A represents the
A) MR curve. B) ATC curve. C) MC curve. D) AVC curve. E) AFC curve.
The components of investment expenditures include all of the following except
A) financial investment. B) residential investment. C) non-residential investment. D) inventory investment.
Which of the following is the MOST likely explanation for a Detroit construction company's imports of Canadian concrete blocks made in Windsor, Ontario?
a. the Ricardian model b. offshoring c. technology d. proximity