If the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne:
A. partly by the suppliers and mostly by the consumers if the demand curve is elastic.
B. entirely by the consumers.
C. entirely by the suppliers.
D. mostly by the suppliers and partly by the consumers if the demand curve is inelastic.
Answer: C
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In economics, the demand for a good refers to the amount of the good people:
a. would like to have if the good were free. b. are willing to buy at various prices. c. need to achieve a minimum standard of living. d. will buy at alternative income levels.
The principle of diminishing marginal utility says that:
A. as more of a good or service is consumed, demand decreases. B. as more of a good or service is consumed, the price will rise. C. the marginal utility of additional units consumed decreases. D. an increase in income causes demand to increase.
If the perfect competitor is making a profit, its output will be ____ it's most efficient output.
A. more than B. equal to C. less than
Refer to the given information. If the members of the underground economy are presently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by about:
A. 0 percentage points.
B. 2 percentage points.
C. 5 percentage points.
D. 6 percentage points.