Excess burden is largest with
A. lump-sum taxes.
B. unit taxes.
C. no taxes.
D. all of these answer options are correct.
B. unit taxes.
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Low-skill workers earn a lower wage than more experienced, higher skilled workers because the
a. low-skill workers lack the intelligence necessary to do any other form of work. b. low-skill workers were never given the opportunity to invest in human capital. c. supply of low-skill workers is large relative to the demand for workers in this skill category. d. low-skill workers are too lazy to search for other employment opportunities.
A new financial innovation results in people switching their funds from checking deposits to savings accounts. The quantity of M1 ________ and the quantity of M2 ________
A) decreases; decreases B) increases; decreases C) decreases; does not change D) decreases; increases
Suppose the demand for pork is given by the equation
Q = p-0.5pc0.2 where pc is the price of chicken. Compute the cross-price elasticity of demand for pork
When a nonprice change affects any of the four components of GDP the:
A. aggregate demand curve will remain unaffected. B. aggregate supply with shift left or right. C. economy will move up or down along the aggregate demand curve. D. aggregate demand curve will shift left or right.