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1. Market power and externalities are examples of market failures.

a. True

b. False

2. Taxes on labor tend to encourage second earners to stay at home rather than work in the labor force.

a. True

b. False

3. Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade.

a. True

b. False

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91423635

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