Tax influence of the elasticity of demand
What will be an ideal response?
Perfectly elastic demand = sellers pay
Perfectly inelastic demand = buyers pay
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Erik can work as a forest ranger, where the probability of being killed in a work-related accident is 1/6,000, or he can earn an additional $800 a year by working as a game warden,
where the probability of being killed in a work-related accident is 3/6,000. Using the compensating differential approach and the above information, what is the value of Erik's life? A) $1.6 million B) $2.4 million C) $3.2 million D) $4.8 million
Which of the following items is not a component of the expenditure approach to measuring U.S. GDP?
A) purchases of food made by families B) Social Security payments made by the government C) purchases of U.S.-made movies by Europeans D) purchases of new homes made by families
When the minimum wage is set above the equilibrium wage rate, the number of hours of labor employed is determined by the ________ and the ________
A) supply of labor; minimum wage B) demand for labor; supply of labor C) supply of and demand for labor; the minimum wage D) demand for labor; minimum wage
The national income accounts include a value for the amount of capital stock "used up" during the production of current output. This dollar amount is called
a. appreciation. b. dollarization. c. amortization. d. depreciation.