When taxes are imposed on a commodity,
a. there is never a deadweight loss.
b. some consumers alter their consumption by not purchasing the taxed commodity.
c. tax revenue will rise by the amount of the tax multiplied by the before-tax level of consumption.
d. the taxes do not distort incentives.
b
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Which adjustment(s) must be made to convert net domestic product to GDP? i. add indirect taxes ii. subtract subsidies iii. add depreciation
A) i and iii only B) i, ii and iii C) ii only D) iii only E) i and ii
An increase in the Japanese interest rate will ________ the supply of dollars and lead the dollar to ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
In order to minimize losses in the short run, a perfectly competitive firm should shut down if
A. total revenue is less than total cost. B. total revenue is less than the difference between total fixed cost and total variable cost. C. total revenue is less than total variable cost. D. total revenue is less than total fixed cost.
Both the long-run and the short-run Phillips curves shift if
A) the expected inflation rate changes. B) the expected unemployment rate changes. C) the natural unemployment rate changes. D) expected real GDP changes. E) the actual inflation rate changes.