A tax is imposed on orange juice. Consumers will bear the full burden of this tax if the:
a. price elasticity of demand for orange juice equals 1.0.
b. demand for orange juice is perfectly elastic
c. demand for orange juice is unit elastic.
d. demand curve for orange juice is perfectly inelastic.
d
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If real GDP is greater than nominal GDP for a particular year, then
A) production must have fallen between the current year and the base year. B) production must have increased between the current year and the base year. C) prices must have fallen between the current year and the base year. D) prices must have risen between the current year and the base year. E) prices must have fallen between the current year and the immediate past year.
If the price of marketable permits is kept very high, _____
a. the quantity of pollution in the economy will increase b. a network externality will arise c. firms will adopt more efficient pollution abatement equipment d. environmental groups will start selling additional permits in the market e. firms will have a greater incentive to pollute
Sophia receives a $400 gift card for her campus bookstore from her parents. Which of the following is true regarding the $400 gift card?
A. It is counted in only M2. B. Stored-value cards are not counted in either M1 or M2. C. It is counted only in M1. D. It is included in both M1 and M2.
Governments can play a role in supporting the production of new ideas by:
A. protecting intellectual property. B. enforcing antimonopoly laws. C. directing the immediate exchange of all scientific ideas. D. taxing industries that become too competitive.