Answer the following statements true (T) or false (F)
1. Whether a tax is shifted forward or backward depends on the price elasticizes of demand and supply.
2. The effect of a tax is the same thing as the incidence of the tax.
3. A direct tax is one that cannot be shifted.
4. A flat tax is a form of sales tax.
5. Value-added tax rates in Europe usually range between 5 and 10 percent.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
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With coalition building and bargaining, transactions costs are higher the larger number of people involved
Indicate whether the statement is true or false
An open economy is a national economy that
A) doesn't interact economically with the rest of the world. B) has a stock market that is open to traders from anywhere in the world. C) has extensive trading and financial relationships with other national economies. D) has established diplomatic relations with most other national economies.
The U.S. is a net importer of agricultural products.
a. true b. false
If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms of Y) ____________________ and the PPF for these two goods is ______________________.
Fill in the blank(s) with the appropriate word(s).