Refer to Sales Tax. After the tax is imposed, the deadweight loss is equal to
The following questions refer to the accompanying diagram which shows the effects of a sales tax imposed on consumers. The initial price and quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + D + G.
b. area F + G + H.
c. area E + H.
d. area E + H + J.
c. area E + H.
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Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for
employment; and 10 would like employment but do not have employment and are not actively looking for employment. The official unemployment rate as calculated by the U.S. Bureau of Labor would equal A) (30/80 ) × 100. B) (20/60 ) × 100. C) (20/100 ) × 100. D) (20/80 ) × 100.
By restricting the amount of a good that may be imported, quotas:
a. increase the price, thus causing domestic producers to sell less than they would with free trade. b. lower the price, thus allowing domestic producers to sell more than they would with free trade. c. increase the price and allow domestic producers to sell more at a higher price than they would with free trade. d. lower the price, thus causing domestic producers to realize lower total revenue from the quota item. e. simply replace foreign production with domestic production.
Identify at least two problems a borrower would face if banks were not required to disclose the information that they are currently required to make available.
What will be an ideal response?
Which of the following restrictions implies that saving and investment are equal for a closed economy?
a. Private saving is equal to zero. b. Public saving is equal to zero. c. The economy's government is running neither a surplus nor a deficit. d. No restriction is necessary; saving and investment are equal for all closed economies.