An ad valorem tax imposed on a monopolist will reduce the deadweight loss generated by the monopolist
Indicate whether the statement is true or false
False. The tax will further reduce the output of the monopolist contributing to a greater DWL.
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If an economy with extractive institutions allows for political creative destruction:
A) poverty in the economy is likely to increase. B) the growth rate of the economy is likely to decrease. C) new leaders are likely to replace old leaders. D) innovation in the economy is likely to decrease.
The dean of your college is considering hiring another economics professor. If the additional revenue that the college can earn from employing the professor exceeds the additional cost, the college should
a. do nothing b. continue to study the issue c. hire the professor d. stop offering economics classes e. not hire the professor and lay off a professor already on the faculty