Suppose a tax is imposed on sellers. The more inelastic the demand for the taxed item, the
A) greater the share of the tax paid by sellers.
B) smaller the deadweight loss from the tax.
C) larger the decrease in consumption because of the tax.
D) All of the above answers are correct.
B
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In the United Kingdom, most doctors are privately employed
Indicate whether the statement is true or false
The income elasticity of demand for caviar tends to be
a. high because caviar is relatively expensive. b. low because caviar is packaged in small containers. c. high because buyers generally feel that they can do without it. d. low because it is almost always in short supply.
Which of the following is not a barrier to entry in an industry?
A. Profit maximization B. Strategic pricing C. Government licensing D. Economies of scale
Answer the following questions true (T) or false (F)
1. Consider a country that produces only two goods: bird feeders and binoculars. Suppose it is possible for this country to increase its production of bird feeders without producing fewer binoculars. In this case, its current output combination is inefficient. 2. Any output combination along a production possibility frontier is associated with overused or unattainable resources. 3. A decrease in the labor force shifts the production possibilities frontier inwards over time.