The more inelastic are demand and supply, the greater is the deadweight loss of a tax
a. True
b. False
Indicate whether the statement is true or false
False
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The index used to translate nominal GDP into real GDP is the
a. Consumer Price Index b. Wholesale Price Index c. GDP Price Index d. Producer Price Index e. Manufacturer's Input Price Index
Assume the government reduces government spending. What is the first round effect on the components of the balance of payments (assume low international capital mobility and fixed exchange rates; also assume that before the government action all the components were 0)? a. Current international transactions balance and reserves account become positive; net nonreserve international
borrowing/lending balance becomes negative. b. Current international transactions balance becomes positive; net nonreserve international borrowing/lending balance and reserves account become negative. c. Net nonreserve international borrowing/lending balance becomes positive; current international transactions balance and reserves account becomes negative. d. Net nonreserve international borrowing/lending balance and reserves account become positive; current international transactions balance becomes negative. e. Reserves account becomes positive; current international transactions balance and net nonreserve international borrowing/lending balance become negative.
If the multiplier is 4 and autonomous government spending increases by $100 billion, real GDP will:
A. increase by $100 billion. B. increase by $400 billion. C. decrease by $400 billion. D. increase by $25 billion.
An industry whose total output can be increased without a change in long-run per-unit costs is a(n)
A) increasing-cost industry. B) constant-cost industry. C) zero-cost industry. D) decreasing-cost industry.