An individual who drives a car without a muffler in an attempt to increase fuel economy is creating

The dead-weight loss from an excise tax

a. is greater if demand is perfectly inelastic. b. is caused by a shift in consumer preferences when the tax is raised. c. is the lost surplus that results from higher prices and lower output resulting from the tax. d. is of little concern to policy makers since all excise taxes are "sin" taxes. e. is the difference between consumer surplus and producer surplus.

Of the three primary tools the Federal Reserve uses to conduct monetary policy, the tool used most often is

A) open market operations. B) discount policy. C) setting reserve requirements. D) acting as the lender of last resort. E) check clearing.