The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the
A) demand curve for imported champagne is horizontal.
B) demand curve is downward sloping and the supply curve is upward sloping.
C) demand curve for imported champagne is vertical.
D) supply curve for imported champagne is vertical.
C
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Unemployment compensation, by ________ layoffs at firms whose sales have declined, ________ the natural rate of unemployment
A) encouraging, raises B) encouraging, lowers C) discouraging, raises D) discouraging, lowers
Despite the monies spent by the federal and state governments, many observers believe which of the following?
a. public infrastructure such as bridges and roads is only adequate b. our educational system is lacking c. not enough monies are spent on homeland defense d. all of these are correct
A positive externality exists and government wants to impose a subsidy in order to bring about an efficient outcome. To accomplish its objective, government must set the subsidy equal to marginal
A) private cost. B) social benefit. C) external cost. D) social cost. E) external benefit.
When there is a shortage of a product in an unregulated market, there is a tendency for
A. quantity supplied to decrease. B. price to fall. C. quantity demanded to increase. D. price to rise.