Deadweight loss is the net loss of:
a. consumer surplus. b. producer surplus.
c. disequilibrium surplus. d. both a and b.
d
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Technology can be defined as the
A. ability to get more output from a given amount of inputs. B. act of putting new methods into effect. C. discovery of new ways of making products. D. result of savings.
While taxing inelastic goods minimizes social costs from taxation, it frequently conflicts with traditional notions of fairness
a. True b. False
Assume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is doubled, the
a. base of the triangle that represents the deadweight loss quadruples. b. height of the triangle that represents the deadweight loss doubles. c. deadweight loss of the tax doubles. d. All of the above are correct.
Suppose there are two countries (country A and country B) each with its own currency (Currency A and Currency B). Suppose the exchange rate is expressed in terms of amount of Currency A needed to get Currency B. A strengthening of Currency A would show up as
A. an increase in the interest rate. B. an increase in the exchange rate. C. a decrease in the exchange rate. D. a decrease in the interest rate.