A tax would not impose a welfare cost only if:
a. the quantity exchanged did not change as a result.
b. supply was perfectly elastic

Given the values in the table above, if the real interest rate rises from 5 to 6, the change in household saving is ________

A) negative 0.5 B) negative 1.55 C) negative 0.45 D) 1.55 E) none of the above

A firm that buys goods that it would normally produce internally from an international company is using

A) transfer pricing. B) insourcing. C) international outsourcing. D) domestic outsourcing.