Which of the following statements is TRUE about taxes?
A) Taxes always create more deadweight loss than do price ceilings and price floors.
B) Taxes decrease both consumer surplus and producer surplus while creating a deadweight loss.
C) Government revenue from a tax is always greater than the loss of producer surplus and consumer surplus.
D) Both answers A and C are correct.
B
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Which of the following takes place in the direct finance market?
A) Savers make funds available to borrowers by making deposits to savings accounts. B) Borrowers take out loans from banks. C) Loans to corporations are made from the sale of corporate bonds. D) Firms borrow funds from their retained earnings.
The LM curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand
A) an increase; money B) an increase; investment C) a decrease; money D) a decrease; investment
Firms in monopolistically competitive markets can differentiate their products on the basis of: a. geographical location. b. service
c. credit terms. d. all of the above.
In Canada, there are no preferences given to Canadian TV networks and programming over U.S. networks and programming
Indicate whether the statement is true or false