The supply curve for motor oil is the typical upward-sloping straight line, and the demand curve for motor oil is the typical downward-sloping straight line. When motor oil is taxed, the area on the relevant supply-and-demand graph that represents the deadweight loss is
a. larger than the area that represents consumer surplus in the absence of the tax.
b. larger than the area that represents government's tax revenue.
c. a triangle.
d. All of the above are correct.
c
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All of the following are economic resources, or factors of production EXCEPT
A) land. B) physical capital. C) money. D) entrepreneurship.
Empirical studies suggest that when a large number of firms are present in a market, prices are usually ________ and profits are usually ________ than when there are only a few firms in a market.
A. lower; higher B. lower; lower C. higher; higher D. higher; lower
The portion of the Obama stimulus package that bolstered state welfare plans is best thought of as
A. monetary policy. B. nondiscretionary fiscal policy. C. discretionary (and expansionary) fiscal policy. D. discretionary (and contractionary) fiscal policy.
Explain how an increase or decrease in demand and supply will affect the value of a nation’s currency.
What will be an ideal response?