A sales tax creates a deadweight loss because
A) there is some paper work opportunity cost of sellers paying the sales tax.
B) demand and supply both decrease.
C) less is produced and consumed.
D) citizens value government goods less than private goods.
E) the government spends the tax revenue it collects.
C
Economics
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An international division of labor will have no effect on total world output because resources are limited
Indicate whether the statement is true or false
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If our government cuts taxes, then we will see
a. an upward movement along the AD curve b. a downward movement along the AD curve c. the AD curve shift to the left d. the AD curve shift to the right e. the AS curve shift to the right
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