As tax rates rise linearly, DWL also rises linearly. ?
Answer the following statement true (T) or false (F)
False
Rationale: As tax rates go up linearly, DWL tends to increase geometrically.
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When the price of a good increases,
A) supply increases. B) quantity supplied increases. C) supply decreases. D) quantity supplied decreases.
The Keynesian mechanism through which monetary policy affects the price level, real GDP, and employment depends on the impact of the:
a. interest rate on savings. b. inflation on investment. c. interest rate on investment. d. interest rate on bond prices.
The corn basis in Nevada is about -$0.30/bu. The corn basis in Gilbert is about -$0.20/bu. Where should a corn farmer living in Ames, halfway between Nevada and Gilbert, ship his corn to make the most money?
A. Nevada. B. Gilbert. C. They both give the same return to the farmer if transportation to each destination costs the same. D. None of the above.
A monopolistic firm will shut down if
A. P = ATC for every level of output. B. P < AVC for every level of output. C. P > ATC for every level of output. D. P > AVC for every level of output.