Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?

Related Mcqs:

A perfectly competitive market has ?

A. firms that set their own prices B. only one seller. C. at least a few sellers. D. many buyers and sellers....

Economists use the term Black Markets for situations where ?

A. goods are sold at prices above legal or official price. B. buyers and/or sellers are not paying taxes as they should C. illegal substances are sold D. transactions are not recorded in the GDP figures....

The allocation of resources is not efficient if ?

A. the marginal cost of production does not equal society’s marginal benefit B. the distribution is inequitable C. economic growth is low D. unemployment is high...

A positive externality occurs when ?

A. The social marginal costs are higher than the private marginals costs B. A product is not provided in the free market C. The social marginal cost equal the social marginal benefit D. The social marginal benefits are higher than the private marginal benefits...

In Nash equilibrium each player chooses the best strategy ?

A. Assuming other players move first B. dominated by the other players C. given the strategies of other players D. that is a credible threat...