In the short run, specific taxes on a firm result in:
a. price increases which may not persist in the long run.
b. an increase in consumer surplus because the tax permits spending in additional government services.
c. shortages of the good being taxed.
d. an increase in producer surplus because of the rise in price.
a
Economics
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Prices in the European ERM countries on fixed exchange rates have converged ___ than for nations outside the ERM.
A) more slowly B) more rapidly C) more completely D) less completely
Economics
A straight-line production possibilities curve takes this shape because
A) the opportunity cost of producing a good is constant. B) the opportunity cost of producing more of a good is decreasing. C) resources are better suited for producing one output than another. D) resources are fixed.
Economics