Taxes create deadweight loss when they
a. distort behavior.
b. cause the price of the product to increase.
c. don't raise sufficient government revenue.
d. cannot be computed easily.
a
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Fractional reserve banking
A local monopoly is a firm that:
a. is the sole supplier of a good, without substitutes, in a specific geographic area. b. is one of the suppliers of a good in a specific geographic area. c. supplies all the products needed by consumers in a country. d. produces to meet the requirement of only one consumer. e. is one of the suppliers of a good that has a lot of substitutes, in a specific geographic area.
Changes in interest rates cause a shift in:
a. the aggregate demand curve b. The aggregate supply curve c. The investment demand curve d. The production possibilities curve
Stagflation involves simultaneous high levels of
A. unemployment and interest rates. B. interest rates and inflation. C. unemployment and inflation. D. economic growth and inflation.