The amount of a tax paid by the buyers will be smaller the
A) more elastic the demand and the more inelastic the supply.
B) more inelastic the demand and the more elastic the supply.
C) more inelastic are both the supply and demand.
D) more elastic are both the supply and demand.
A
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If something is a unit of account, then it:
a. serves as a yardstick for measuring the relative value of other goods b. is a means of holding wealth for the future c. is fairly stable d. is durable and portable e. is accepted as payment for any purchase
Suppose the most you would be willing to pay for a plane ticket home is $250. If you buy one for $175, then your economic surplus is:
A. $75. B. $0. C. $250. D. $175.
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy reacting to a recessionary gap by reducing resource cost levels?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
A merit good is
A. A good or service that society believes everyone is entitled to a minimal quantity of. B. Income payments for which no goods or services are exchanged. C. A good society holds to a higher standard in tax regulations. D. A product that serves as an incentive to produce more output.