The benefit that government receives from a tax is measured by
a. the change in the equilibrium quantity of the good.
b. the change in the equilibrium price of the good.
c. tax revenue.
d. total surplus.
c
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Which of the following statements is false?
A) A straight line has a slope of zero. B) A curved line has slope values that change at every point. C) A direct relationship has a positive slope value. D) An inverse relationship has a negative slope value.
Price elasticity of demand measures the
a. change in quantity demanded generated by a change in price b. change in price generated by a change in quantity demanded c. percentage change in the price of a good demanded generated by a percentage change in people's income d. percentage change in quantity demanded generated by a percentage change in price e. percentage change in price generated by a percentage change in quantity demanded
The reserve ratio refers to
A. the proportion of assets held in the form of cash or deposits in the Federal Reserve. B. the proportion of deposit liabilities that must be held in the form of cash or deposits in the Federal Reserve. C. the proportion of reserves that must be held in the form of vault cash. D. the proportion of reserves that can be loaned out.
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the market price falls from P1 to P2, then:
A. total surplus increases. B. deadweight loss increases. C. overproduction increases. D. underproduction decreases.