When a good is taxed, the tax revenue collected by the government equals the decrease in the welfare of buyers and sellers caused by the tax
a. True
b. False
Indicate whether the statement is true or false
False
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If companies that were creating pollution had to pay the social cost of production, they would want to supply:
A. more at any given price. B. less at any given price. C. the same amount at the equilibrium price. D. the same amount at any given price.
Assume the central bank lowers the discount rate. What is the net effect on the unemployment rate (assume fixed exchange rates)? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The unemployment rate rises. b. The unemployment rate falls. c. The unemployment is not affected. d. The change in the unemployment rate depends on the degree of international capital mobility.
Raising taxes on gasoline __________ the price of gasoline and __________ the number of gallons purchased.
Fill in the blank(s) with the appropriate word(s).
An ____________ identifies all the combinations of capital and labor that can be purchased at a given total cost.
Fill in the blank(s) with the appropriate word(s).