Tax distortions happen because tax laws take into consideration only:
A. nominal income.
B. nominal output.
C. real income.
D. real output.
Answer: A
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"New industries need to be protected or they won't have the opportunity to grow up." This is a statement of the __________ argument for trade restrictions
A) national-defense B) infant-industry C) anti-dumping D) tariff E) none of the above
Use the figure below to calculate the cross-price elasticity of demand for good X when the price of good Y increases from $12 to $14:
A. 0.64 B. 0.20 C. 15.38 D. 0.42 E. 2.00
The Cournot model assumes that the firms take their competitors output as fixed.
Answer the following statement true (T) or false (F)
If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the
a. consumer has consumer surplus of $2 if he or she buys the good. b. consumer does not purchase the good. c. market is not a competitive market. d. price of the good will fall due to market forces.