An efficient tax system is one that imposes small deadweight losses and small administrative burdens
a. True
b. False
Indicate whether the statement is true or false
True
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The difference between economic profit and accountant’s definition of profit is that an economist’s total cost counts the ____ of inputs.
A. absolute value B. overheads C. opportunity cost D. gross cost
In 1860 the ratio of farmers to manufacturing workers was roughly ____ ; by 1910 that ratio was ____
a. 1:1; 1:5 b. 1:3; 1:1 c. 3:1; 1:1 d. 10:1; 1:1
Every society must deal with the problem of scarcity because:
a. people do not have enough money to buy everything they need. b. government levies heavy taxes on households and firms. c. human beings become satiated as consumption increases. d. human wants are nearly unlimited relative to the availability of resources. e. productive resources, technology, and labor are unlimited.
Suppose that the marginal benefit per dollar spent on pop tarts is less than the marginal benefit per dollar spent on waffles. The consumer can always increase their utility by buying:
A. more pop tarts and fewer waffles. B. fewer pop tarts and more waffles. C. more of both goods. D. The consumer cannot increase her utility.