The Laffer curve illustrates that
a. deadweight loss rises by the square of the increase in a tax.
b. deadweight loss rises exponentially as a tax increases.
c. tax revenue first rises, then falls as a tax increases.
d. Both a) and b) are correct.
c
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An inverse relationship will be graphed as
A) a line that is upward sloping. B) a line that is downward sloping. C) a loop. D) a U-shaped curve.
A credence good is a product
A. that emphasizes the features of its product. B. that an individual must consume before the quality can be established. C. with characteristics that enable an individual to evaluate the product's quality in advance of a purchase. D. with qualities that consumers lack the expertise to assess without assistance.
Which of the following is least likely to be considered a firm in an imperfectly competitive industry?
A. the only locally owned and operated bank in Severn, MD B. a Burger King in Pittsburgh, PA C. a wheat farmer in Kansas D. Ohio Bell Telephone Company
Between 1999 and 2007, the behavior of firms in the trucking industry closely matched the outcome predicted by the model of perfect competition
Indicate whether the statement is true or false