The graph shown demonstrates a tax on buyers. Which of the following can be said about the effect of this tax?
A. The price paid by buyers is greater than that received by sellers, and the difference is the tax wedge.
B. The price paid by buyers is less than that received by sellers, and the difference is the total tax revenue.
C. The price paid by buyers is greater than that received by sellers, and the difference is the total tax revenue.
D. The price paid by buyers and received by sellers is higher than it was before the tax was imposed.
A. The price paid by buyers is greater than that received by sellers, and the difference is the tax wedge.
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If real GDP per capita in the United States is $8,000 in 2016, and if real GDP per capita is $12,000 in 2026, what is the total percent change in the growth rate of GDP per capita between 2016 and 2026?
A) 3.33% B) 5% C) 33% D) 50%
If a price floor is set below the current market clearing price, then
A) a surplus must immediately occur. B) a shortage must immediately occur. C) there will be incentives for black markets to develop. D) quantity demanded will remain equal to quantity supplied at the current market clearing price.
Tony's indifference curve for two goods (normal salt and low potassium salt) is linear, whereas Rachael's indifference curve for these same two goods is convex. We can infer that _____
a. Tony considers normal salt and low potassium salt to be perfect substitutes b. Tony considers normal salt and low potassium salt to be perfect complements c. Tony considers normal salt and low potassium salt to be public goods d. Tony considers normal salt and low potassium salt to be inferior goods
The competitive labor market model suggests that the persistence of significant employer discrimination requires the owners of the firm to
A. engage in collusion. B. hire a quantity of labor in which VMPL exceeds the wage rate. C. supply capital at a rate of return below what could be earned elsewhere. D. supply capital at a rate of return higher than what they could earn by investing their money elsewhere.