The demand for gasoline is inelastic and the supply of gasoline is elastic. Therefore,
A) sellers bear most of the incidence of a tax on gasoline.
B) buyers bear most of the incidence of a tax on gasoline.
C) the government bears most of the incidence of a tax on gasoline.
D) the incidence of a tax on gasoline depends if the tax is imposed on sellers or on buyers.
E) None of the above answers is correct.
B
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In the figure above, with international trade ________ helicopters per year are produced in the United States
A) 360 B) 480 C) 720 D) 240
Anthony's Accountants is the only employer of accountants in the island of Fairisle. The table gives the demand and supply of accountants on Fairisle. The marginal cost of hiring a sixth accountant is ________ an hour
A) $20 B) $15 C) $25 D) $45
In the short run, a contractionary fiscal policy would cause
a. the AD curve to shift to the right b. equilibrium real GDP to decrease and the price level to increase c. the AS curve to shift left d. the economy to slide along the AD curve e. equilibrium GDP and the price level to fall
Sticky wages:
A. slow the process of reducing inflation. B. speed the process of reducing inflation. C. speed the recovery process after a recession. D. slow the recovery process after a recession.