The fact that individuals substitute away from a taxed activity creates _____
a. the excess burden of taxation
b. the welfare cost of taxation
c. deadweight loss of taxation
d. all of the above
e. a and b
d
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A money market deposit would be considered
a. M1 money b. M1 and M2 money c. M2 money d. M2 and M3 money e. a near money
If interest rates rose more in Japan than in the U.S., then other things the same
a. U.S. citizens would buy more Japanese bonds and Japanese citizens would buy more U.S. bonds. b. U.S. citizens would buy more Japanese bonds and Japanese citizens would buy fewer U.S. bonds. c. U.S. citizens would buy fewer Japanese bonds and Japanese citizens would buy more U.S. bonds. d. U.S. citizens would buy fewer Japanese bonds and Japanese citizens would buy fewer U.S. bonds.
Increasing returns to scale:
a) means that output rises proportionately more than inputs, resulting in increasing per unit costs. b) means that output rises proportionately more than inputs, resulting in lower per unit costs in the long run. c) has the same meaning as increasing costs of production. d) means that output rises proportionately less than inputs, increasing per unit cost of production in the short run. e) implies that the long-run average cost curve is shifting downward.
_________ refers to the body's reaction to a demand
a. Stress b. Stimulus c. Hardship d. Overload