Taxes cause deadweight losses because taxes
a. reduce the sum of producer and consumer surpluses by more than the amount of tax revenue.
b. prevent buyers and sellers from realizing some of the gains from trade.
c. cause marginal buyers and marginal sellers to leave the market, causing the quantity sold to fall.
d. All of the above are correct.
d
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People under the age of 25 are less likely to be poor than those older than 25
Indicate whether the statement is true or false
Those hurt by inflation include
a. labor unions with COLA clauses in their labor contracts b. borrowers who are indebted to banks and other lending institutions c. savers who hold checking and saving accounts in banks d. producers of goods such as automobiles, computers, and food e. owners of precious metals, antiques, and works of art