An excise tax is imposed on smartphones. If the elasticity of demand is 2 and the elasticity of supply is 1, we can predict that:
A. sellers will bear 2/3 of the tax burden.
B. sellers will bear the full tax burden.
C. consumers will bear 2/3 of the tax burden.
D. consumers will bear the full tax burden.
Answer: A
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When Social Security first began, the required contribution levels were _____
a. 2 percent of a worker's pay for all income earned b. 2 percent of a worker's pay for the first $3,000 of income earned c. 1 percent of a worker's pay for the first $3,000 of income earned d. 1 percent of a worker's pay for all income earned
A device used to measure the movement of stock prices is called a(n)
A) exchange B) index. C) network. D) bureaucracy.
Part of the reason why barely used cars sell for much less than new cars is that
A. buyers and sellers have symmetric information about cars and both have less information about used cars than about new cars. B. buyers and sellers have symmetric information about cars and both have more information about used cars than about new cars. C. buyers have more information about used cars than sellers do. D. sellers have more information about used cars than buyers do.
The median voter rule says that:
A. people "vote with their feet." B. the median voter will not bother to vote in the election, it is extremists who vote. C. the median voter never gets what he or she wants in an election. D. government decisions will reflect the preferences of the median voter.