Which of the following is correct? A tax burden
a. falls more heavily on the side of the market that is more elastic.
b. falls more heavily on the side of the market that is less elastic.
c. falls more heavily on the side of the market that is closest to unit elastic.
d. is distributed independently of the relative elasticities of supply and demand.
b
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The European Union membership criteria includes all of the following EXCEPT
A) the country must participate in free trade with all of its goods and services. B) the country must follow market-based economics. C) the country must formally adopt the EU-wide rules such as technical standards, environmental inspections, banking supervision, etc. D) the country must be a stable functioning democracy. E) None of the above.
Refer to the above figure. Demand is
A) perfectly elastic. B) unitary elastic. C) perfectly inelastic. D) undetermined without more information.
In both Gamma and Delta average labor productivity is $40,000 per worker per year. The population of Gamma is 200,000 and the population of Delta is 400,000. Fifty percent of the population in each country is employed. Total output in Gamma is ________ and total output in Delta is ________.
A. $2. 4 billion; $4. 8 billion B. $4 billion; $8 billion C. $8 billion; $16 billion D. $100,000; $200,000
If property rights are not clearly defined and enforced, then
A) incentives for specialization based on comparative advantage are weakened. B) some potential gains from specialization and trade are lost. C) resources are devoted to protecting possessions rather than to production. D) All of the above answers are correct.