If the government places a $1 tax on an item for which demand is perfectly elastic
A. the tax will be split equally between the consumer and producer, with each paying exactly $0.5.
B. most of the tax will be paid by the consumer.
C. the entire tax will be paid by the producer.
D. the entire tax will be paid by the consumer.
Answer: C
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If inflation increases unexpectedly, then
A) lenders receive a lower real interest rate than they expected. B) neither borrowers nor lenders lose. C) borrowers pay a higher real interest rate than they expected. D) lenders gain and borrowers gain.
Suppose Brandon's indifference curves are defined as U = (3/4)?FS + (1/4)?FH, where FS is consumption during sunny weather and FH is consumption during a hurricane. Further suppose Brandon receives 64 units of food when it is sunny and 16 units when there is a hurricane. If the probability of sunshine is ? = 0.75, expected food consumption is:
A. 28. B. 40. C. 52. D. 80.
A firm that is suffering a loss should shut down immediately if total revenue (TR) is less than total variable cost (TVC)
a. True b. False
Which of the following is true of the law of diminishing marginal utility?
a. The additional utility that a person receives from consuming the first unit of a good will be more than the additional utility received from consuming the fifth unit of that same good. b. The additional utility that a person receives from consuming the first unit of a good will be less than the additional utility received from consuming the fifth unit of that same good. c. The additional utility that a person receives after consuming the first unit of a good will be equal to zero. d. The additional utility that a person receives from consuming the first unit of a good will be equal to the additional utility received from consuming the fifth unit of that same good.