Draw another supply curve S to indicate a $1 tax increase. (a) How much of this tax is borne by the buyer? (b) How much of this tax is borne by the seller?
(a) $.33
(b) $.67
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The demand for cake decorators has no relationship to the demand for cakes
a. True b. False Indicate whether the statement is true or false
Which of the following statements is not correct?
a. Medical research can be an example of a public good. b. The private market will tend to undersupply public goods. c. The free-rider problem occurs when a good is nonexcludable. d. All goods provided by the government are public goods.
Which of the following is not a common response to the moral hazard problem that employers face?
a. offering all employees some funding for additional education b. paying efficiency wages c. requiring employees to provide itemized receipts for reimbursable expenses d. paying year-end bonuses rather than higher monthly earnings
Nominal GDP is defined as the:
A. Value of output in current dollars. B. Dollar value of services but not goods. C. Output produced by domestically owned factors of production regardless of where the factors are located. D. Value of output in constant prices.