The principle of voluntary exchange is the concept that a voluntary exchange between two people makes both people better off
Indicate whether the statement is true or false
TRUE
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Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any?
A) the area adc if the supply curve is S0 and the area bec if the supply curve is S1. B) the area becf under either supply curve. C) the area afcd if the supply curve is S0 and the area bfce if the supply curve is S1. D) There is no deadweight loss; revenue raised is used to fund government projects.
According to new classical economists,
a. deficits should have a large and negative impact on output. b. deficits should have no discernable impact on output. c. deficits will have no impact on private consumption. d. growth in the 1990s was driven by falls in the deficit. e. None of the above
Return to the case of Jan, the hyperbolic discounter from the previous question. What values of B and C will lead her to be consistent with a plan not to undertake the action?
a. C < B < 2C. b. B < C. c. B > 2C. d. B < C < 2B.
State and local governments spend more on the purchases of goods and services than the federal government
Indicate whether the statement is true or false