Which of the following is true of deadweight loss?
a. It occurs when taxes are imposed on a market
b. It occurs when there is a surplus in a market.
c. It occurs when there is a shortage in an economy.
d. It occurs when there is a budget deficit in an economy.
a. It occurs when taxes are imposed on a market
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If the price of motel rooms increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel rooms has:
A. decreased by 5%. B. decreased by 10%. C. increased. D. remained constant.
Refer to Figure 12-1. If the firm is producing 200 units
A) it should increase its output to maximize profit. B) it is making a loss. C) it breaks even. D) it should cut back its output to maximize profit.
The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be increased by a constant rate year after year
a. True b. False Indicate whether the statement is true or false
If price elasticity is less than one, then demand is said to be inelastic
Indicate whether the statement is true or false