The deadweight loss from a tax:
A. is zero when demand is perfectly elastic.
B. is zero when supply is perfectly elastic.
C. is zero when demand is perfectly inelastic.
D. is never zero.
C. is zero when demand is perfectly inelastic.
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Which of the following is not a component of gross investment?
A. Construction of a suburban housing project. B. The purchase of a new drill press by the Ajax Manufacturing Company. C. The piling up of inventories on a grocer's shelf. D. The purchase of 100 shares of AT&T by a retired business executive.
The economy is considered to be at full employment when
A) the frictional unemployment rate is zero. B) the structural unemployment rate is zero. C) the cyclical unemployment rate is zero. D) the unemployment rate is zero.
For a screen to be successful,
a. High risk individuals must not be able to pose as low risk individuals b. It must not be profitable for high risk individuals to pose as low risk individuals c. High risk individuals should be able to pose as low risk individuals d. None of the above
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato is:
A. lower in Country A than Country B. B. higher in Country A than Country B. C. the same in both countries. D. impossible to calculate without more information.