"The government should levy higher taxes on the rich and use the additional revenues to provide better housing for the poor." This statement illustrates:
a. the fallacy of composition

Costs that deter firms from changing prices in response to demand changes are known as

A) sticky costs. B) menu costs. C) policy costs. D) production costs.

If the U.S. continually runs a bilateral trade deficit with Japan, then

a. Japan's trade policies must be unfair to the United States. b. the United States is worse off as the result of its trade with Japan. c. Japan is the low-cost supplier of goods that we import intensively. d. both a and b are true.