A tax on candy will be paid by ______
A. only buyers if the demand for candy is inelastic
B. only sellers if the supply for candy is inelastic
C. buyers and sellers if the demand for candy is elastic
D. only buyers if the supply of candy is elastic
C While sellers pay more of the tax if demand is elastic, both buyers and sellers part of the tax.
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Perfect competition ________ a fair outcome ________
A) achieves; because both the fair rules and fair results conditions are met B) achieves; because total surplus is maximized C) does not achieve; because entrepreneurs only earn a normal profit D) does not achieve; because firms must be price takers E) may achieve; if average total costs are minimized
Short-run supply curves for perfectly competitive firms tend to be upward sloping because:
A) there is diminishing marginal product for one or more variable inputs. B) marginal costs increase as output increases. C) marginal fixed costs equal zero. D) A and B are correct. E) B and C are correct.
To determine whether or not a pair of goods are complements, economists are interested in the cross price elasticity of demand between the two goods
a. True b. False Indicate whether the statement is true or false
The standard economists use to assess whether an activity should be undertaken is
a. majority vote b. the marginal benefit assessment. c. the gold standard d. economic efficiency.