If a tax is imposed on a market with inelastic supply and elastic demand, then
a. buyers will bear most of the burden of the tax.
b. sellers will bear most of the burden of the tax.
c. the burden of the tax will be shared equally between buyers and sellers.
d. it is impossible to determine how the burden of the tax will be shared.
b
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Sarah and Claire are sisters. Their aunt gave 10 cookies to Sarah and asked her to share some with Claire. She could choose how many she would give her, but if Claire was not happy with her share, her aunt would take back all the cookies
a) How should Sarah decide how many cookies to give Claire if Claire prefers more cookies to fewer cookies? b) Will there be any change in her decision if she knows that Claire values fairness?
The figure above shows the demand and cost curves for a single-price monopoly. What price will the firm charge?
A) $50 per unit B) $30 per unit C) $20 per unit D) $10 per unit
Output in the short run is determined by which of the following factors when an economy operates at full employment?
A. the price level B. supply C. the labor force D. demand
In 2012, U.S. exports of services ______ U.S. imports of services by about _____.
A. exceeded; $19B B. fell short of; $19B C. exceeded; $196 B D. fell short of; $196B