Deadweight loss as a result of taxation occurs because the:
A. quantity of a good that is bought and sold is above the market equilibrium quantity.
B. price that is charged to the consumer is lower than the price the seller receives.
C. price that is charged to the consumer is above the market equilibrium quantity.
D. quantity of a good that is bought and sold is below the market equilibrium quantity.
D. quantity of a good that is bought and sold is below the market equilibrium quantity.
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Behavioral game theory assumes
A) people act rationally. B) people are subject to biases that cause them to act irrationally. C) that people behave differently when playing games than when "playing for real." D) people optimize using all available information.
In the graph for the consumption function, the 45-degree line
A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.
For a linear demand curve, demand is ____ elastic at _____ prices.
B. less; higher C. more; lower D. constantly; all
The tobacco industry is an example of an oligopoly market structure
Indicate whether the statement is true or false