If the demand curve for a commodity faced by sellers is highly elastic, buyers have greater ability to substitute away from it
Indicate whether the statement is true or false
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If the natural rate of unemployment equals 6 percent and the actual rate of unemployment equals 5 percent, then cyclical unemployment equals:
A. 11 percent. B. -1 percent. C. 1 percent. D. -1.2 percent.
The slope of an isoquant is equal to the ratio of the price of the input on the horizontal axis divided by the price of the input on the vertical axis, multiplied by -1
Indicate whether the statement is true or false
Monopolies are discouraged in the United States because
A) they are more efficient than other industries. B) they can produce at lower cost in the short run. C) they restrict output and boost prices. D) they hire too many workers.
A 7.25 percent sales tax
A. Is a regressive tax because poor individuals consume a higher percentage of their income than high-income individuals. B. Does not impose an additional tax burden on most individuals because the sales tax is paid entirely by the seller. C. Is a progressive tax because high-income individuals buy more goods and services than low-income individuals. D. Is a proportional tax because the rate is the same for all income groups.