Taxes create deadweight loss when they
a. distort behavior.
b. cause the price of the product to increase.
c. don't raise sufficient government revenue.
d. cannot be computed easily.
a
Economics
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The hypothesis that people use all available information to predict the future is known as:
a. rational expectations. b. adaptive expectations. c. lagged expectations. d. trend expectations.
Economics
Other things equal, in the short run a lower price level leads households to
a. increase consumption and firms to buy more capital goods. b. increase consumption and firms to buy fewer capital goods. c. decrease consumption and firms to buy more capital goods. d. decrease consumption and firms to buy fewer capital goods.
Economics