Resources devoted to complying with the tax laws are a type of deadweight loss
a. True
b. False
Indicate whether the statement is true or false
True
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If a good is income inelastic what does this imply would happen to consumption of this good if you were to win the lottery?
What will be an ideal response?
If purchasing power parity holds, then if the price of a basket of goods in the U.S. rose from $1.000 to $1,200 and the price of the same basket in Poland rose from 6,400 Polish zloty to 8,000 zloty, then
a. the nominal exchange rate would be unchanged and the real exchange rate would appreciate. b. the U.S. dollar would appreciate and the real exchange rate would stay the same. c. the nominal exchange rate would be unchanged and the real exchange rate would depreciate. d. the U.S. dollar would depreciate and the real exchange rate would be unchanged.
The price elasticity for demand of health care has been estimated at a low-end value of ______.
a. 0.1 b. 0.2 c. 0.5 d. 1.0
In Figure 20.1, total revenue is maximized at the unit price of
A. $100. B. $50. C. $80. D. $60.