When supply is relatively elastic, the deadweight loss of a tax is larger than when supply is relatively inelastic. B. When demand is relatively inelastic, the deadweight loss of a tax is smaller than when demand is relatively elastic.
quantity supplied will increase. Use the following graph for a competitive market to answer the question below. Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2.
If a price floor in this market is set at P2, then consumer surplus equals area rev: 05_10_2018 Multiple Choice a + b. a + b + d. a. b. A Use the figure below to answer the following question.
Only $2.99/month ECON STUDY Flashcards Learn Write Spell Test PLAY Match Gravity Created by Angel_Wright72 Terms in this set (56) The table below represents the quantity of rice demanded for selected countries.
If spending exceeds output, real GDP will decline as firms cut back on production. False. This statement is false because if spending exceeds output, inventories will be falling.
Planned investment is called an injection because it. is an addition to the flow of aggregate spending. Saving must equal planned investment at equilibrium GDP in the private closed economy because when this is so, spending and production will be the same, and there will be no unplanned inventory, or GDP, changes.
Amanda pays no tax because she has no income . If they all live in a country that has a progressive income tax, which will be higher: the tax that Ben pays or the sum of the taxes Cathy and Dylan pay?
A. Yes, since taxes are paid by consumers.
Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are married or they are single. Suppose Amanda earns nothing, Ben earns $60,000, and Cathy and Dylan each earn $30,000. They are all single.
C. No, because Ben's taxes do not increase with marriage.
multiple choice 2the marginal cost would exceed the marginal benefit by $12. the marginal benefit would exceed the marginal cost by $12.the marginal benefit would exceed the marginal cost by $18.the marginal benefit would equal the marginal cost.
multiple choice 2some resources are better at producing certain goods while others are better at producing different goods.education is required to become productive at producing goods.as we increase the production of goods and services, the dollar cost of producing those goods will decrease.there is a limited amount of resources used to produce goods.
multiple choice9 bowls at a price of $300 per bowl.4 bowls at a price of $150 per bowl.300 bowls at a price of $9 per bowl.150 bowls at a price of $4 per bowl. 4 bowls at a price of $150 per bowl. The table below presents the production possibilities schedules for Geoff and Dave, both of whom bake bread and muffins.