When the price of a good is measured in dollars, then the size of the deadweight loss that results from taxing that good is measured in
a. units of the good that is being taxed.
b. units of a related good that is not being taxed.
c. dollars.
d. percentage change.
c
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The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the equilibrium price is ________ per ton
A) $60 B) $70 C) $80 D) $90
What is excess capacity? What industry has excess capacity in the long run: perfect competition or monopolistic competition?
What will be an ideal response?
Antitrust laws prohibit undesirable business practices by firms holding monopoly power
a. True b. False Indicate whether the statement is true or false
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and current international transactions become more negative (or less positive). b. The GDP Price Index rises, and current international transactions becomes more negative (or less positive). c. The GDP Price Index and current international transactions remain the same. d. The GDP Price Index rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.