An increase in wages in the public sector is caused solely by increased labor productivity in that sector.

A deadweight loss results from the imposition of a tax on a good because the tax

a. induces the government to increase its expenditures. b. reduces the quantity of exchanges between buyers and sellers. c. causes a disequilibrium in the market. d. imposes a loss on buyers that is greater than the loss to sellers.

Assume that Country X and Country Y are trading partners and the exchange rates are fixed. If prices in Country Y rise, all of the following are expected to happen except

A. Country X will export more. B. Country Y will import more. C. net exports will rise for Country X. D. trade will boost the GDP of Country Y.