Taxes change behavior for all of the following reasons except they:
A. alter the incentives faced by market participants.
B. drive a wedge between the price paid by buyers and the price received by sellers.
C. result in a lower equilibrium quantity of the good or service being consumed.
D. increase consumer and producer surplus experienced at market.
D. increase consumer and producer surplus experienced at market.
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A man can rewire a house in 12 hours and can panel a room in 15 hours, and his teenage son can rewire a house in 18 hours and can panel a room in 16 hours. Who is more efficient in rewiring a house, and who is more efficient in paneling a room?
a. The father is more efficient at both activities. b. The father is more efficient at rewiring a house, and the son is more efficient at paneling a room. c. The father is more efficient at paneling a room, and the son is more efficient at rewiring a house. d. The two are equally efficient at both activities.
The liquidity approach to measuring the money supply uses
A) near moneys only. B) M1 only. C) M2 plus some highly liquid assets. D) M1 plus some highly liquid assets.
If a monopolistically competitive firm engages in a successful advertising campaign resulting in above positive economic profits then in the long run that firm will
a. continue to earn positive economic profits because successful advertising is one of the barriers to entry b. earn zero economic profits because the government will begin to regulate the industry c. earn negative economic profits because it won't be able to advertise indefinitely d. earn zero economic profits because other firms will also begin to advertise e. continue to earn positive economic profits because most monopolistically competitive firms can earn economic profits in the long run
Transaction costs
What will be an ideal response?