Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes upward?
a. As the size of the tax increases, tax revenue continually rises and deadweight loss continually falls.
b. As the size of the tax increases, tax revenue and deadweight loss rise initially, but both eventually begin to fall.
c. As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss continually rises.
d. As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss falls initially, but eventually it begins to rise.
c
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Suppose a bank has $200,000 in deposits, a reserve ratio of 10 percent, and reserves of $45,000. This bank has excess reserves of
A) $155,000. B) $25,000. C) $10,000. D) $5,000.
Positive economics statements are testable
Indicate whether the statement is true or false
The employment-to-population ratio equals
A) (labor force)/(working-age population) × 100. B) (number of people employed)/(labor force) × 100. C) (number of people with full-time jobs)/(labor force) × 100. D) (number of people employed)/(working-age population) × 100.
The median-voter theorem suggests that:
A. voters tend to vote with a "mob-mentality," all voting the same. B. Politicians always receive more votes in general elections when they appeal to extremists in their party. C. the middle voter is generally influenced by the side they have more information on concerning an issue. D. politicians maximize their votes by taking the policy position preferred by the median voter, under certain conditions.