If the tax on a good is increased from $0.30 per unit to $0.90 per unit, the deadweight loss from the tax
a. remains constant.
b. increases by a factor of 4.
c. increases by a factor of 9.
d. increases by a factor of 16.
c
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Refer to the above figure. The Law of Increasing Additional Costs applies in
A) Panel A only. B) Panel B only. C) Panels A and B. D) neither Panel A nor B.
Table 8-1 Item Amount (billions) Personal Consumption Expenditures 600 Depreciation 50 Wages 800 Indirect Business Taxes 10 Rental Income 25 Gross Private Domestic Investment 150 Corporate Profits 75 Net Exports 5 Government Purchases of Goods and Services 200 Government Transfer Payments 50 According to the data in Table 8-1, the value of NNP is
A. 900 B. 805 C. 750 D. 705
Which would cause a leftward shift in the supply curve for telephone service?
a. A decrease in the price of telephones b. An increase in the wage of telephone workers c. An increase in consumer incomes in the economy d. An improvement in telephone technology
Expansionary fiscal policy involves
A. a decrease in government spending and/or an increase in taxes. B. only an increase in taxes. C. an increase in government spending and/or a decrease in taxes. D. only a decrease in government spending.