One way to minimize the excess burden resulting from a specific tax is to:
a. tax only wealthy firms and individuals.
b. spread the tax over many goods and services.
c. tax goods for which either supply or demand is inelastic.
d. tax luxury items such as yachts and sports cars.
c
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In economics, the entrepreneur is the person who
a. acts as the go-between among different manufacturers. b. puts together land, labor, and capital and tries to make a profit. c. is a shrewd business executive who works as a consultant to other businesses to show them more profitable methods of operation. d. is a visiting diplomat from France.
A country's GNP is always larger than its GDP
Indicate whether the statement is true or false
Which of the following is a good indicator of short-term interest rates in international markets?
A) prime rate B) Treasury bill rate C) LIBOR D) Federal funds rate E) none of the above
The short-run aggregate supply curve slopes: a. downward because firms can sell more, and hence, will produce more when prices are lower
b. downward because firms find it costs less to purchase labor and other inputs when prices are lower and hence, they produce more. c. upward because firms normally can purchase some labor and other inputs at fixed costs for some period of time. d. upward because firms find that it costs more to purchase labor and other inputs when prices are higher and hence they must produce and sell more in order to make a profit.