If a tax did not induce buyers or sellers to change their behavior, it would not cause a deadweight loss
a. True
b. False
Indicate whether the statement is true or false
True
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The parity ratio:
A. compares worker productivity in the farm and nonfarm sectors. B. is the ratio of per capita farm income to per capita nonfarm income. C. is the ratio of prices received by farmers to prices paid by farmers. D. is the ratio of prices paid by farmers to prices received by farmers.
The money price of a good is that price
A) expressed in constant 2017 dollars. B) expressed in purchasing power against a common item like bread. C) expressed in today's dollars. D) that would clear the market.
To explain the existence of excess capacity, Keynes argued that
A) prices and wages are flexible, and eventually markets would go back to equilibrium. B) the long run average cost curve should not occur at the full employment level. C) the aggregate demand curve can be manipulated by advertising. D) prices and wages are inflexible in the downward direction.
In general, as individuals undertake additional years of schooling,
A) their stock of human capital increases. B) the marginal productivity of individuals as workers declines. C) the marginal benefit to society of the extra years of education increases. D) the marginal productivity of individuals as workers becomes negative.