Deadweight losses arise because a tax causes some individuals to change their behavior
a. True
b. False
Indicate whether the statement is true or false
True
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When attempting price regulation a government faces what problem(s)?
A) limited information B) bribes C) uncooperative firms D) All of the above.
Which concept explains how individual consumers in market economies determine what is to be produced?
a. competition b. consumer sovereignty c. decentralized decision-making d. free enterprise
Political forces:
A. affect the price mechanism through cultural norms. B. affect the price mechanism through scarcity. C. do not affect the price mechanism. D. affect the price mechanism through the legal system.
Gross investment equals
A) net investment - depreciation + change in inventories. B) net investment + depreciation. C) net investment + change in inventories. D) depreciation + change in inventories.