The excess burden or deadweight loss of a tax refers to the
a. increase in product price as a result of the tax.
b. growth in government funded programs as a result of the revenue generated by the tax.
c. loss of disposable income consumers suffer from the tax.
d. reduction in gains from mutually beneficial exchanges that are eliminated as a result of the tax.
D
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The long run market supply curve is formed by adding up individual firm supply curves in the industry.
Answer the following statement true (T) or false (F)
The price of any productive resource is ____ related to ____ the final good or service:
a. inversely; demand for b. directly; demand for c. directly; supply of d. not; supply of
Suppose Sun Bakery sells cupcakes and buns, using various equipment and labor to make and deliver its products. Which of the following costs is a fixed cost for Sun Bakery?
a. The money paid to buy cupcake liners and flour b. The money paid to provide health benefits to the staff c. The money paid to workers as wages d. The money paid to pay back the loan taken to purchase commercial-grade ovens
The nominal interest rate
What will be an ideal response?