If a tax is economical,
a. its cost of collection is small relative to the revenue collected.
b. it has an economic impact on households.
c. it creates no economic distortions.
d. its revenues are used to finance productive investments.
a. its cost of collection is small relative to the revenue collected.
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The shortest lag monetary policy faces is
A) data. B) recognition. C) transmission. D) legislative.
Juan Pablo and Zak are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $8,000 . If they both advertise on radio, each will earn a profit of $14,000 . If neither advertises at all, each will earn a profit of $20,000 . If one advertises on TV and other advertises on radio,
then the one advertising on TV will earn $12,000 and the other will earn $10,000 . If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $22,000 and the other will earn $4,000 . If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $24,000 and the other will earn $8,000 . If both follow their dominant strategy, then Juan Pablo will a. advertise on TV and earn $8,000. b. advertise on radio and earn $14,000. c. advertise on TV and earn $22,000. d. not advertise and earn $20,000.