The total burden of a tax equals tax collections minus excess burdens
a. True
b. False
Indicate whether the statement is true or false
False
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When price equals marginal cost
A) firms make zero profits. B) firms make positive profits. C) the industry is in long-run equilibrium. D) the marginal benefits of consuming an extra unit of the good exactly equals the marginal cost to society of producing the good.
Wage disparities among countries may result from open border policies
Indicate whether the statement is true or false
The U.S. market for interbank borrowing and lending is called the:
a. Federal funds markets. b. Secondary market. c. Money market. d. Real Goods Market. e. Primary market.
England has a relatively cool and cloudy climate that is ill suited for grape growing. It can produce 200 units of wine for every 400 units of cloth. Portugal, in contrast, has a relatively warm and sunny climate that is good for growing grapes. It can produce 200 units of wine for every 100 units of cloth. Which country has the higher opportunity cost of producing cloth?
A. England: 2 units of wine for every unit of cloth B. England: 1/2 unit of cloth for every unit of wine C. Portugal: 2 units of wine for every unit of cloth D. Portugal: 1/2 unit of wine for every unit of cloth