When a tax is levied on a good,
a. government collects revenues which might justify the loss in total welfare.
b. there is a decrease in the quantity of the good bought and sold in the market.
c. a wedge is placed between the price buyers pay and the price sellers effectively receive.
d. All of the above are correct.
d
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Finite-sample distributions of the OLS estimator and t-statistics are complicated, unless
A) the regressors are all normally distributed. B) the regression errors are homoskedastic and normally distributed, conditional on X1,... Xn. C) the Gauss-Markov Theorem applies. D) the regressor is also endogenous.
People cope with uncertainty about the future:
A. exactly the same way, regardless of the situation. B. in very similar ways, regardless of the situation. C. in many ways, such as buying insurance. D. by always avoiding it.
If banks are prevented from lending out funds, there will be no money creation in an economy
a. True b. False Indicate whether the statement is true or false
A normal good is one:
a. Which all people like b. For which demand increases when income increases c. For which demand increases when price decreases d. Which all normal people like