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

Related Mcqs:

1. Except for taxes to offset ______ taxes are ______?

   A. imperfect competition popular
   B. externalities , distortionary
   C. inequality , a first best option
   D. poor health, unnecessary

2. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus
   B. is static; low; rise; deficit;
   C. falls; falls; falls; surplus
   D. rise; falls; rises; deficit

3. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

4. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

5. What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?

   A. Bonus
   B. Up level
   C. Goodwill
   D. Upgradation

6. The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it

   A. increase; increase
   B. increase; reduce
   C. reduce; reduce
   D. reduce; increase

7. The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?

   A. reduce , reduce
   B. increase, increase
   C. increase, reduce
   D. reduce, increase

8. If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ?

   A. valid for stereos, but nor for most products imported by Pakistan
   B. valid for most products imported by Pakistan but not for stereos
   C. deceiving since Koreans eventually spend the dollars on Pakistani goods
   D. deceiving since the dollars spent on a stereo built in the Pakistan eventually wind up overseas

9. If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

   A. falls; falls; falls; surplus
   B. falls; rises; falls; surplus
   C. is static; low; rises; deficit
   D. rises; falls; rises; deficit

10. A binding price ceiling creates?

    A. a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price
    B. a surplus
    C. a shortage
    D. an equilibrium