The dead-weight loss from an excise tax
a. is greater if demand is perfectly inelastic.
b. is caused by a shift in consumer preferences when the tax is raised.
c. is the lost surplus that results from higher prices and lower output resulting from the tax.
d. is of little concern to policy makers since all excise taxes are "sin" taxes.
e. is the difference between consumer surplus and producer surplus.
C
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Nominal interest rates tend to be higher in countries with
A) higher rates of inflation. B) lower rates of inflation. C) lower real interest rates. D) Both B and C.
Each and every point along a production possibilities curve represents an efficient output option for an economy
a. True b. False Indicate whether the statement is true or false
You are operating a heavy equipment leasing and rental company. Your consultant tells you to focus you marketing strategy on new startup companies rather than thriving companies that are remodeling and seeking new equipment. Why might this suggestion be a good one given our tax code?
What will be an ideal response?
Unemployment statistics are often criticized for
A. overstating the number of people out of work, because retirees are included in the statistics. B. understating the number people out of work, because full-time college students are excluded. C. understating the number of people out of work, because discouraged workers are excluded in the statistics. D. overstating the number of people out of work, because the unemployment statistics include all low-income workers.