The size of a tax and the deadweight loss that results from the tax are
a. positively related.
b. negatively related.
c. independent of each other.
d. equal to each other.
a
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Which of the following is TRUE for a profit maximizing monopolist?
A) Marginal cost is always less than average total cost. B) In the long run, the firm's economic profit equals zero. C) In the short run, the firm will shut down if its marginal cost is less than its average variable cost. D) In the short run, the firm can make an economic profit even if its marginal cost is less than its average variable cost.
A barter economy
A) cannot be a market economy. B) is an economy without monetary exchange. C) is an economy with no business firms. D) is not a competitive economy.
Which of the following people would be least likely to search the newspaper ads for bargains and clip store coupons?
a. a retired person b. an unemployed person c. a waitress earning $5 per hour d. an attorney earning $100 per hour e. a student on summer vacation
The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is referred to as:
A. Open-market operations. B. Closed-market operations. C. Discounting. D. Expansionary fiscal policy.