When a unit tax is placed on demanders ____
a. it will be paid entirely by demanders if the demand curve is elastic
b. it will have the same effect as a similar unit tax placed on suppliers
c. they will pay a larger share than if it was initially placed on suppliers
d. they will pay a smaller share than if it was initially placed on suppliers
b
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An article in The Economist reported that prices of CDs in Britain were much higher than prices in the United States or other European countries. There were only a few major companies, and a report from a Parliament committee said there was no serious price competition. The best explanation for this is that
A. the industry was a contestable market. B. there were entry barriers in production and distribution of CDs. C. firms were avoiding profit opportunities. D. there was substantial differentiation of products.
A graphical analysis of tariffs reveals that
A. they benefit domestic consumers at the expense of domestic producers. B. their revenue gains outweigh the costs to domestic consumers. C. although the benefits are not shared equally, everyone in the domestic economy benefits from tariffs. D. they increase domestic production of the good for which imports face tariffs.
If the Federal Reserve conducts open market purchases, the money supply ________, shifting the LM curve to the ________, everything else held constant
A) decreases; right B) decreases; left C) increases; right D) increases; left
The short-run break-even price is
A) the price at which a firm's total revenues exceed total costs. B) the point at which the firm's total costs are maximized. C) the price at which a firm's total revenues equal its total costs. D) the point at which the firm's implicit costs are maximized.