The incidence of a tax refers to
a. who actually collects the tax.
b. how frequently the tax is collected.
c. who bears the economic burden of the tax.
d. how the tax affects prices or wages.
c
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Why is the demand curve for a monopolist downward sloping? How does this affect the monopolist’s behavior?
What will be an ideal response?
If the nominal interest rate is 9 percent and the real interest rate is 3 percent, then the inflation rate is
a. -6 percent. b. 3 percent. c. 6 percent. d. 12 percent.
If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs
a. These purchases are called capital investment. If you raise the funds to purchase them from others you are a saver. b. These purchases are called capital investment. If you raise the funds to purchase them from others you are a borrower. c. These purchases are called consumption. If you raise the funds to purchase them from others you are a saver. d. These purchases are called consumption. If you raise the funds to purchase them from others you are a borrower.
Economists who believe that the economy has a strong self-correcting mechanism argued that, after September 11, 2001, the economy needed
A. a quick and expansionary fiscal policy stimulus. B. a quick and expansionary monetary policy stimulus. C. only a short time to return to equilibrium full employment. D. President Bush to propose a large budget stimulus package.