Corrective taxes cause deadweight losses, reducing economic efficiency
a. True
b. False
Indicate whether the statement is true or false
False
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Your textbook discusses "dry" counties in the U.S. What is a dry county?
A) A county where rainfall is below the national average B) A county that experiences no rainfall C) A county in which it is illegal to produce, purchase and sell alcohol D) A county in which only dry gin is consumed
A major difference between a monopoly and perfect competition is that monopolies can earn an economic profit in the long run and a perfectly competitive firm cannot.
Answer the following statement true (T) or false (F)
Cartels are organizations that:
A. coordinate the output and pricing decisions of a group of firms. B. keep markets contestable. C. encourage price wars. D. use predatory pricing to monopolize industries.
When money is accepted as payment in a market transaction, it is functioning as a
A) store of value. B) unit of accounting. C) medium of exchange. D) unit of investment.