A tax that distorts an economic decision always imposes an excess burden and decreases efficiency.
Answer the following statement true (T) or false (F)
False
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Because collective action problems are ________ to solve, society often ________
A) relatively easy; handles the problems itself B) relatively easy; ignores the problems C) impossible; chooses to live with the problems D) difficult; requests help from the government
Refer to Scenario 12.2. In this game, Jerome's tough strategy would lead to his preferred equilibrium of
A) Eliza donates a kidney and Jerome does not. B) both Eliza and Jerome donate a kidney. C) Jerome donates a kidney and Eliza does not. D) neither Eliza nor Jerome donates a kidney.
Which of the following statements best describes the effects of rapid movements in exchange rates?
a. Rapid movements from a weak to a strong exchange rate may cripple a country's export industries, while rapid movements from a strong to a weak exchange rate may cripple its banking sector. b. Rapid movements from a weak to a strong exchange rate may cripple a country's banking sector, while rapid movements from a strong to a weak exchange rate may cripple its export industries. c. Rapid movements from a weak to a strong exchange rate may cripple a country's export industries, while rapid movements from a strong to a weak exchange rate may cripple its import industries. d. Rapid movements from a weak to a strong exchange rate may cripple a country's import industries, while rapid movements from a strong to a weak exchange rate may cripple its banking sector.
The one disadvantage of paper money is that it is easier to
a. duplicate and counterfeit. b. carry. c. divide. d. store and use at a later time.