The total burden of the tax is
A. the excess burden created by the tax minus the revenue collected from the tax.
B. the ratio of the revenue collected and the excess burden created by the tax.
C. the revenue collected from the tax minus the excess burden created by the tax.
D. the sum of the revenue collected by the tax and the excess burden created by the tax.
Answer: D
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Suppose s = 0.18, Y = 4000, K = 6200, n = 0.02, and d = 0.08. This makes national saving ________ than steady-state investment, so that the amount of capital per worker is ________
A) greater, rising B) greater, falling C) less, rising D) less, falling
Only a change in the price level can cause shifts in both the aggregate expenditure line and the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
A profit-maximizing firm with market power will always produce a level of output where
A. demand is inelastic. B. price is greater than average total cost. C. marginal revenue is greater than average total cost. D. demand is elastic.
According to the textbook, the owners of restaurants encourage tipping in order to:
A. solve a commitment problem with their wait staff. B. avoid playing a dominated strategy. C. sustain cooperation in a repeated prisoner's dilemma. D. insure that their waiters earn enough money.