The negative effect of a tax on the economic surplus of participants in a market should:
A. be weighed against the potential benefits of the public goods financed by the tax.
B. insure that the tax will never be approved by voters.
C. be enough to convince the government that the tax is a bad idea.
D. be ignored if the government needs to generate tax revenue.
Answer: A
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Nafta:
A. has increased the standard of living in the North African member nations. B. benefits workers in the participating nations but hurts consumers by raising prices. C. allows completely unrestricted movement of goods, services, and resources between the member nations. D. has reduced most trade barriers between Canada, Mexico, and the United States.
A bond that pays no annual interest (or coupons) and has a face value at maturity will fetch a price today that is equal to the:
A. Future value of its face value B. Number of years in the life of the bond times its face value C. Present value of the number of years in the life of the bond times its face value D. Present value of its face value