A nonneutral tax cannot be used to reduce distortions created by another nonneutral tax.
Answer the following statement true (T) or false (F)
False
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Neoclassical economists believe that government policy should focus on creating a market-oriented environment that rewards________________.
a. importing b. exporting c. innovation d. production
If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then
a. the supply curve for mopeds shifts downward by $200. b. sellers of mopeds receive $200 less per moped than they were receiving before the tax. c. buyers of mopeds are unaffected by the tax. d. None of the above is correct.
When checks are exchanged between banks, the Fed oversees the banks to ensure the appropriate funds have been transferred. This is known as
A. check floating. B. check kiting. C. check clearing. D. check balancing.
An increase in supply of a product results when
A) the companies that produce the product have higher materials costs. B) the government reduces subsidies on the product. C) taxes on the product are increased. D) technological innovations are introduced in the manufacturing process.