As long as there is some substitution effect in response to a change in the relative price of a good, there will be an excess burden from a tax
a. True b. False
a
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Universal service may require making a service available in small communities where the limited scale of operations may make costs extremely high.
Answer the following statement true (T) or false (F)
Which of the following questions about predatory pricing remains unresolved?
a. Are the courts capable of determining which price cuts are competitive and which are predatory? b. Are the courts capable of determining which price cuts are good for consumers? c. Is predatory pricing ever a profitable business strategy? d. All of the above questions about predatory pricing are unresolved.
Which nation achieved the ideal communist society as described by Marx?
a. Castro's Cuba b. Stalin's Soviet Union c. No nation has achieved Marx's vision of communist society. d. Mao's China
The nominal interest rate is the sum of the
A. real interest rate and the historic rate of inflation. B. real interest rate and the expected rate of inflation. C. historic rate of inflation and the expected rate of inflation. D. expected rate of inflation and the rate of price level increase.