If elasticity of demand is 0.2, elasticity of supply is 0.6, and a 10 percent excise tax is levied on the good:
A. consumers pay 25 percent of the tax.
B. consumers pay 20 percent of the tax.
C. sellers pay 60 percent of the tax.
D. sellers pay 25 percent of the tax.
Answer: D
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When a society is more equal:
A. the more the economy grows, so the best economy is the most equal. B. the more everyone gains when the economy improves, but that doesn't mean the most equal society is the best society. C. economic growth will create imbalance, and the government will need to work to equalize incomes. D. economic growth will provide the most resources for its disadvantaged members .
A reduction in the amount of farmable land inside a nation would cause the:
A. long-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. short-run aggregate supply curve to shift to the right. D. aggregate demand curve to shift to the right.
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