Deadweight losses represent the
a. inefficiency that taxes create.
b. shift in benefit from producers to consumers.
c. part of consumer and producer surplus that is now revenue to the government.
d. increase in revenue to the government.
a
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
If a monopolist were allowed (and able) to first degree price discrimination, there would be no efficiency/equity tradeoff so long as the government can tax the profits of the firm and redistribute the tax revenues in a lump sum way.
Answer the following statement true (T) or false (F)
Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$9000.9$2,500$2,500$1,000Determine the change in the equilibrium level of Consumption (find ?C) following a decrease in investment from 2,500 to 2,000 (?I = -$500).
A. positive $4,500 B. positive $4,000 C. negative $4,000 D. negative $4,500
The role that dead capital plays in a country's economic growth is that
A. growth neither increases nor is impaired by dead capital. B. growth increases because the dead capital is replaced with more technologically efficient capital. C. growth increases since the firms using the dead capital are using it for free. D. growth is impaired since the capital cannot be allocated to its most efficient use.