The greater the tax wedge, the ________ the amount of employment and the ________ potential GDP
A) larger; smaller
B) smaller; smaller
C) smaller; larger
D) larger; larger
E) None of the above because the tax wedge does not affect employment or potential GDP.
B
Economics
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The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the total surplus?
A) $0 B) $12,000 C) $24,000 D) $16,000
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Which of the following best defines foreign exchange?
a. a trade between two countries b. the market where exporting and importing activities take place c. the price of a currency relative to another currency d. the currency of another country used for trading e. the dollars that the United States uses to buy goods from other countries
Economics