Which of the following outcomes is NOT a result of a tax imposed on sellers of gasoline?
A) Supply decreases, a deadweight loss is created, and the price rises.
B) The market becomes less efficient and the government collects the tax revenue.
C) Demand does not change, the price rises, and consumer surplus decreases.
D) Demand decreases, the market becomes more efficient, and the price rises.
D
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A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be
A) cyclically unemployed. B) frictionally unemployed. C) structurally unemployed. D) seasonally unemployed.
You sign a contract to pay $1000 next year for the refrigerator you bought today. The rate of inflation is 10% and the real interest rate is 7%. Alternatively, you could pay $875 today. What should you do to save the most money?
What will be an ideal response?