A tax increase has
a. a multiplier effect but not a crowding out effect
b. a crowding out effect but not a multiplier effect
c. both a crowding out and multiplier effect
d. neither a multiplier or crowding out effect
c
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In the long run, firms in markets that are ________ earn zero economic profits
A) perfectly competitive B) monopolistically competitive C) monopolies D) Both A and B
An increase in the price of the output produced by labor will:
A. increase the supply of labor. B. decrease the demand for labor. C. decrease the supply of labor. D. increase the demand for labor.
Rent seeking refers to ______.
a. politicians trading votes b. exempting homeowners from certain taxes c. using resources to gain political favor d. choosing not to vote unless it counts
A "twinkie tax" on fatty foods would aim to
A) reduce the consumption of fatty foods. B) reduce the production of fatty foods. C) raise tax revenues for other uses. D) All of the above.