Refer to Figure 18-1. Area F + G represents
A) the portion of sales tax revenue borne by consumers.
B) the portion of sales tax revenue borne by producers.
C) the excess burden of the sales tax.
D) sales tax revenue collected by the government.
Answer: B) the portion of sales tax revenue borne by producers.
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Refer to Table 9-10. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?
A) 14.3 B) 87.5 C) 114.3 D) 160
A fact based on observable phenomenon that is not influenced by differences in personal opinion is called
a. an objective concept. b. a subjective concept. c. an unintended consequence. d. ceteris paribus.
Which of the following examples shows a price change in the most elastic range of a linear demand curve?
a. The price of CloseShave electric razors falls from $120 each to $100 each. b. The price of CloseShave electric razors falls from $100 each to $85 each. c. The price of CloseShave electric razors falls from $85 each to $80 each. d. The price of CloseShave electric razors increases from $80 each to $100 each.
If a firm is operating on the production function, then workers:
A. are usually putting forth minimal effort. B. may not be putting forth maximal effort. C. are usually putting forth average effort. D. must be putting forth maximal effort.