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Author Question: The existence of dual economies support the argument for _____. a. developing domestic exports b. ... (Read 75 times)

magmichele12

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on: Jun 30, 2018
The existence of dual economies support the argument for _____.
 a. developing domestic exports
  b. reducing quotas on foreign goods
  c. a more active monetary policy
  d. the free movement of resources
  e. imposing trade restrictions

Question 2

How do taxes distort the incentives of buyers and sellers in a market?


Dominic

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Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

A tax drives a wedge between the price paid by buyers and that received by sellers. In general, a tax will both increase the price paid by buyers and decrease the price received by sellers, causing both the quantity of output demanded and the quantity supplied to decrease.


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