The demand for chocolate is perfectly inelastic in Foodieland. If a tax is imposed on chocolate, ________
A) the deadweight loss due to taxation will be high
B) the deadweight loss due to taxation will be one
C) consumers will stop consuming chocolate
D) the tax burden will fall entirely on buyers
D
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Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$.50Friendly Groceries$4.00$2.50If the corn was grown and the jar of popcorn produced in the year 2015, but the jar was sold at Friendly Groceries in the year 2016, what is the contribution of these transactions to GDP in the year 2016?
A. $0.50 B. $4.00 C. $1.50 D. $0.00
Flexible exchange rates are more volatile than floating ones
a. True b. False
Refer to the supply and demand graph below for a public good. If Q1 units of the public good are produced, then:
A. Users are willing to pay more for the public good than it costs to produce it
B. Users are willing to pay less for the public good than it costs to produce it
C. There is an over-allocation of resources towards producing this public good
D. Allocative efficiency is achieved in the market
If the rate of inflation in the United States exceeds the rate of inflation in Great Britain we would expect the U.S. dollar to depreciate in value against the British pound
Indicate whether the statement is true or false