In effect, a tax increase has the same effect as a _____.
Fill in the blank(s) with the appropriate word(s).
decrease in supply
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Black market transactions generally increase the deadweight losses created by restrictive government policies
Indicate whether the statement is true or false
The branch of macroeconomics concerned with changes in the natural real GDP is the theory of
A) business cycles. B) economic growth. C) GDP gaps. D) unemployment.
According to Garrett Hardin's view of The Tragedy of the Commons:
A. Externalities will be internalized by the market. B. Individuals will use the commons up to the point where marginal benefits equal marginal social costs. C. Individuals will create institutions to prevent the collapse of the commons. D. Individual will use the commons beyond the socially efficient point.
All of the following are reasons that trade between nations is beneficial EXCEPT
A. gains from trade. B. protection of domestic industries. C. gains from specialization. D. exchange of ideas.