The Laffer curve illustrates that
a. deadweight loss rises by the square of the increase in a tax.
b. deadweight loss rises exponentially as a tax increases.
c. tax revenue first rises, then falls as a tax increases.
d. Both a) and b) are correct.
c
Economics
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Ceteris paribus, the wages of clerks would increase if there was a decrease in: a. the period of training required for clerk jobs
b. non-monetary "fringe" benefits received by clerks. c. the marginal revenue product of clerks. d. the cost of medical insurance benefits paid to clerks.
Economics
If the quantity of pretzels demanded decreases by 8% when the price of beer increases by 6%, the cross-price elasticity of demand between pretzels and beer is
A. -14. B. -1.33. C. -0.75. D. 2.
Economics