What do economists mean by an efficient tax?
What will be an ideal response?
A tax is efficient if it imposes a small excess burden relative to the tax revenue it raises.
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The GAP ratio is a measure of __________ risk
A) credit B) leverage C) interest rate D) liquidity
A monopolist can sell 6 units per day at $8 per unit, or 7 units per day at $7 per unit. Its marginal revenue for the seventh unit of output is: a. $49. b. $7
c. $1. d. $-1.
Labor demand is more elastic
A. the greater is labor's share in total costs. B. the greater is the elasticity of substitution between labor and capital. C. the greater is the supply elasticity of capital. D. the greater is the elasticity of demand for the firm's output. E. All of the statements are correct.
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:
A. 4 units of corn. B. 4 units of wheat. C. 1/4 unit of corn. D. 15 units of corn.