Taxes distort economic behavior because they
A) change the composition of income and spending.
B) cause deviations in economic behavior from the efficient, free-market outcome.
C) change the balance between private and public expenditures.
D) change the composition of consumption, investment, government spending, and net exports.
B
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Refer the above figure. An increase in labor productivity is likely to stimulate and shift the labor demand curve to
A) the right and hence increase union wages per year. B) to the left and hence increase union wages per year. C) the right and hence lower union wages per year. D) None of the above is likely to happen.
A monopolist will maximize profits by producing a quantity specified by setting marginal revenue equal to marginal cost
a. True b. False Indicate whether the statement is true or false
If consumer confidence rises and inflation expectations remain unchanged, what happens to inflation and unemployment? Defend your answer
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below: 
Given the above, at the 1% level of significance, which estimates are statistically significant?
A. Only a?, b, and c? are statistically significant B. All are statistically significant C. Only a? is statistically significant D. All but a? are statistically significant E. All but b and d are statistically significant