To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The deadweight loss created by this tax would be greater than shown in the figure above if
A) the demand were more elastic.
B) the supply were more elastic.
C) neither of the above.
D) both A and B above.
D
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A Keynesian econometric model is likely to emphasize that monetary policy affects economic activity through changes in
A) the money supply. B) reserve requirements. C) interest rates. D) currency holding by the public.
The risk that increased market interest rates will cause a decline in the value of an investment bank's holdings of long-term securities is known as
A) credit risk. B) interest-rate risk. C) currency risk. D) security risk.
Perfectly competitive markets are not the most efficient type.
Answer the following statement true (T) or false (F)
Refer to the above figure. For a normal good, the rightward shift of the curve could have been caused by
A. a decrease in income. B. a technological improvement. C. an increase in the cost of inputs. D. an increase in income.