If the tax on a good is tripled, the deadweight loss of the tax
a. remains constant.
b. triples.
c. increases by a factor of 9.
d. increases by a factor of 12.
c
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The profit motive leads firms to use inputs efficiently.
Answer the following statement true (T) or false (F)
When the money supply rises by 10%, in the short run, output ________ and the price level ________
A) rises; is unchanged B) declines; falls C) is unchanged; falls D) declines; is unchanged
Help in financing our federal budget deficit comes from a ________ amount of net exports, which is called ________
A) negative, net foreign investment B) negative, foreign borrowing C) positive, net foreign investment D) positive, foreign borrowing
“As long as total revenue slopes up, marginal revenue must slope up also.” Explain whether this statement is true or false.
What will be an ideal response?