Taxes cause deadweight losses because they
a. lead to losses in surplus for consumers and for producers that, when taken together, exceed tax revenue collected by the government.
b. distort incentives to both buyers and sellers.
c. prevent buyers and sellers from realizing some of the gains from trade.
d. All of the above are correct.
d
Economics
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Each of the following items would appear as assets on the central bank's balance sheet, except:
A. loans. B. foreign exchange reserves. C. currency. D. securities.
Economics
Use the following graph to answer the next question.
In the diagram, the economy's short-run AS curve is line ________ and its long-run AS curve is line ________.
A. 2; 1 B. 3; 4 C. 1; 3 D. 2; 4
Economics