Only in the case of perfectly inelastic demand will consumers pay the full amount of a specific tax or ad valorem tax
Indicate whether the statement is true or false
False. While it is true that consumers pay the full tax in the case of perfectly inelastic demand, it is not the only case. Regardless of demand elasticity (except in the rare case where demand is also perfectly elastic), consumers will pay the full amount of the tax if supply is perfectly elastic.
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The problem typically during a recession is not that there is too little money, but too little spending. If the problem was too little money, what would be its cause? If the problem was too little spending, what could be its cause?
What will be an ideal response?
If the Brazilian demand for American exports rises at the same time that U.S. productivity rises relative to Brazilian productivity, then, in the long run, ________, everything else held constant
A) the Brazilian real will appreciate relative to the U.S. dollar B) the Brazilian real will depreciate relative to the U.S. dollar C) the Brazilian real will either appreciate, depreciate, or remain constant relative to the U.S. dollar D) there is no effect on the Brazilian real relative to the U.S. dollar
Carefully define the following terms and explain their importance to the study of economics
a. resources b. rational decision c. scarcity d. opportunity cost
For procurement of conventional products like hammers and shovels, the most appropriate type of contract is ______
a. fixed fee b. cost plus fixed fee c. cost plus percentage fee d. cost plus incentive fee