According to the MABP, BOP disequilibria
A) must be transitory.
B) are essentially real phenomena.
C) must be permanent.
D) are not important.
A
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Deadweight losses arise because a tax causes some individuals to change their behavior
a. True b. False Indicate whether the statement is true or false
An inward shift of the production possibilities curve
A. represents an economic decline. B. means that the previous levels of production are now unobtainable except under unusual circumstances such as war. C. means that the economy can produce more of both goods. D. represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
Consumer surplus is price less willingness to sell.
Answer the following statement true (T) or false (F)
The real-income effect is likely to be greater when
A) the substitution effect is not very large. B) the marginal utility of the last unit is high. C) the marginal utility per dollar spent on the last unit is high. D) the good is an expensive good.