The incidence of a tax falls more heavily on
a. consumers than producers if demand is more inelastic than supply.
b. producers than consumers if supply is more inelastic than demand.
c. consumers than producers if supply is more elastic than demand.
d. All of the above are correct.
d
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An increase in the money supply will decrease both interest rates and exchange rates.
a. true b. false
Sharon voluntarily quit her job and is now searching for a new position. Sharon is classified as a
A. job loser. B. job reentrant. C. new entrant. D. job leaver.
An oligopoly with a dominant price leader will produce a level of output between that which would prevail under competition and that which a monopolist would choose in the same industry.
Answer the following statement true (T) or false (F)
Refer to the diagram. If actual production and consumption occur at Q2,
A. an efficiency loss (or deadweight loss) of e + f occurs. B. efficiency is achieved. C. an efficiency loss (or deadweight loss) of a + b + c + d occurs. D. an efficiency loss (or deadweight loss) of a + c occurs.