Which is true?
A. A per unit tax levied in an industry with a horizontal demand curve will be all paid by the producer.
B. A seller never pays all of a per unit tax no matter what the market conditions.
C. A per unit tax levied on the producer in an industry with a horizontal supply curve will be all paid by the producer.
D. A producer never pays all of a per unit tax no matter what the market conditions.
Answer: A
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In an economy where aggregate spending is given by Y = 5,500 + 0.6Y - 20,000r, the interest rate is currently 2 percent (0.02). If potential output equals 8,000, the central bank must ________ the interest rate to close the ________ gap.
A. raise; expansionary B. raise; recessionary C. lower; recessionary D. lower; expansionary
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect the world:
A. supply curve to shift more to the right than the world demand curve as a result. B. supply curve to shift more to the left than the world demand curve as a result. C. demand curve to shift more to the right than the world supply curve as a result. D. demand curve to shift more to the left than the world supply curve as a result.
Suppose Tucker Inc is willing to sell one gizmo for $10, a second gizmo for $15, a third for $20, and the market price is $25 . What is Tucker Inc's producer surplus?
a. $10 b. $15 c. $30 d. $50
Microeconomics is the branch of economics that focuses on:
a. broad issues such as growth, unemployment, inflation, and trade balance. b. the actions of particular agents within the economy, like households, workers, and business firms. c. the means of production (resources and businesses) that are owned and operated by private individuals or groups of private individuals. d. workers or firms, and whether they are well suited within the overall production process.