Using supply and demand analysis, which of the following is true?
A. The burden of a tax on production cannot be determined on the basis of who actually pays the tax.
B. The burden of a tax on production is always split evenly between consumers and sellers.
C. Consumers bear the entire burden of a per unit tax on production.
D. Sellers bear the entire burden of a per unit tax on production.
Answer: A
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If an economy wants to experience economic growth, what decision must it make and carry out? Explain.
What will be an ideal response?
If the marginal propensity to save is 0.4 and disposable income increases from $1,000 to $1,500, saving will increase
A) $300. B) $200. C) $100. D) $400.
Reserve requirements are the
A) minimum percentages of deposits that banks must hold as reserves. B) minimum amount of an owner's financial resources that must be placed in a depository institution. C) rules covering the types of deposits that banks may offer. D) rules covering the types of assets that banks may purchase.
Funding for canals came from which of the following sources?
(a) Private investments and tolls (b) Taxes (c) Borrowing on government credit (d) All of the above