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

Economics

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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.

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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

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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.

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Fractional reserve banking

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