As a result of the imposition of a tax on a product:
a. some consumer surplus is transferred from buyers to producers
b. some producer surplus is transferred from sellers to consumers.
c. some consumer and producer surplus is transferred from buyers and sellers to the government.
d. there is no change in either consumer or producer surplus.
c
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Which of the following is a Pareto improvement?
A) A monopolist loses its monopoly when a government policy allows another firm to enter the market, resulting in lower prices and higher quantity available for consumers. B) A government policy is implemented that results in the middle class being better off, and the very rich only have to pay a little bit more in taxes. C) A government policy removes a market failure. D) None of the above.
The ________ exchange rate is the market rate between two currencies.
A. nominal bilateral B. real bilateral C. real effective D. nominal effective