If the government imposes a tax on a competitive market with no externalities, then i. resource use is not efficient. ii. there is a deadweight loss. iii. consumer surplus is at its maximum
A) ii only
B) i and ii
C) iii only
D) i and iii
E) i, ii, and iii
B
You might also like to view...
Refer to the table above. The opportunity cost per dollar of value added in designing shoes by workers in Eduland is ________
A) $0.25 B) $0.50 C) $4 D) $12
If a sizable number of workers were switched from full-time to half-time employment, then the official unemployment rate would:
a. rise. b. fall. c. remain unchanged. d. react unpredictably.
What is the aggregate supply curve?
A. a curve showing the various quantities of total real output that business will purchase for investment at various alternative price levels. B. a curve showing the various quantities of total real output that will be offered for sale at various alternative price levels. C. a curve showing the various quantities of goods and services that households will provide at various alternative price levels. D. a curve showing business investment at various alternative price levels.
An In the News article discusses "Too Many Sellers: The Woes of T-Shirt Shops." If T-shirt shops are perfectly competitive firms, then
A. Shops can definitely earn an economic profit in the long run. B. There are few T-shirt shops. C. The barriers to entry are low. D. Each shop has market power.