Transfer payments exactly replace the income lost because of taxes
a. True
b. False
Indicate whether the statement is true or false
False
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Firms deducting the asset's full cost at the time of acquisition from taxable income is called investment tax credit.
A. True B. False C. Uncertain
Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land. What happens to land not classified as "wetlands" within the community? (i) The price of non-wetland land will rise. (ii) The marginal product of non-wetland land will fall. (iii) The marginal product of non-wetland land will rise
a. (i) and (ii) only b. (ii) only c. (i) and (iii) only d. (iii) only
The predetermined-money-growth-rate rule states that the annual growth rate in the money supply will be constant at the average annual growth rate of Real GDP
Indicate whether the statement is true or false
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. 
If the government provides a subsidy of $500 per ton, then consumer surplus will be ________ per day.
A. $4,000 B. $8,000 C. $9,000 D. $1,000