There is no deadweight loss from a tax:
A. only if demand is perfectly elastic.
B. only if supply is perfectly inelastic.
C. if either demand or supply is perfectly elastic.
D. if either demand or supply is perfectly inelastic.
D. if either demand or supply is perfectly inelastic.
You might also like to view...
Real GDP measures ________
A) the total amount of income of every person and firm in the economy B) the percentage of income produced by workers and firms C) how rapidly the overall level of prices is rising D) how many hours the average U.S. citizen works a year E) how many automobiles are produced in a month
Business firms supply goods and services to ________ and purchase factors of production in ________.
A. factor markets; product markets B. factor markets; national markets C. product markets; factor markets D. national markets; factor markets
The idea of compensating differences is used:
A. by inclusive unions as an argument in bargaining for wage rate increases. B. to justify the application of minimum wages to low-wage labor markets. C. to explain the divergence between wage rates and marginal resource cost. D. to explain wage rate differences based on differing nonmonetary aspects of jobs.
A large negative GDP gap implies:
A. an excess of imports over exports. B. a low rate of unemployment. C. a high rate of unemployment. D. a sharply rising price level.