The more inelastic the schedule, the greater the percentage of the tax that is borne on the other side of the market
a. True b. False
b
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Adam Smith believed that markets coordinated the self-interests of consumers.
Answer the following statement true (T) or false (F)
The endogenous growth model predicts that
A) there is convergence in incomes per capita across countries. B) output per capita is constant. C) rich countries will always become poor. D) differences in per capital incomes across countries persist forever.
The classical theory of aggregate supply where markets are perfectly flexible
a. may or may not be compatible with the Keynesian system. b. is easily added the IS-LM framework of aggregate demand. c. is fundamentally incompatible with the Keynesian system. d. is consistent with the IS-LM framework if all shocks are to the IS curve. e. none of the above.
If a firm was owned by its employees,
A) there is a higher probability that wage reductions would outweigh layoffs. B) those in charge would not act any differently than regular owners; there would still be layoffs. C) those not in charge would remain risk neutral. D) wage reductions would be lower than if the firm was run for profit.