If tax rates are raised to avoid a deficit during a recession, then
a. real GDP and deadweight loss from taxes will rise.
b. real GDP will rise and deadweight loss from taxes will fall.
c. real GDP will fall and deadweight loss from taxes will rise.
d. real GDP and deadweight loss from taxes will fall.
c
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If an individual discounts delayed utils with a weight of 1/4, the present value of 90 utils to be received after a year is:
A) 17.25 utils. B) 22.5 utils. C) 90 utils. D) 460 utils.
The sum of consumer surplus and producer surplus is equal to
A) total profit. B) zero. C) the economic surplus. D) the deadweight loss.
GDP per capita is
a. GDP/GDP deflator. b. GDP deflator/GDP. c. population/GDP. d. GDP/population.
The supply of a good will be more elastic, the
a. more the good is considered a luxury. b. broader is the definition of the market for the good. c. larger the number of close substitutes for the good. d. longer the time period being considered.