the area BDL’L

the area of WBDW’

the areas WBFW’ and FDL’L together

.the areas WBDW’ and FDL’L together

.a negative externality

.a positive externality

increasing return

a public good

those levied unexpectedly after economic decisions have taken place

.ad valorem taxes

those consistent with the Ramsey principle of public finance

.proportional income taxes

the Ramsey Principle

the Laffer Curve

.the long-run Phillips Curve

.the Beveridge Curve

Firms delay new hires in good times until they are really sure that the economy has improved

Such regulations increase the effective cost of labour to firms

Firms will be able to pay lower wages because greater job security has offsetting value to workers

Firms will make increased use of temporary work agencies