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.
a
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Define the term rent. Explain why confiscation of rents would cause more than a simple transfer of income from resource owners to the government.
What will be an ideal response?
Suppose a firm produces pollution when it generates electricity. The cost of the pollution is called the
A) marginal cost. B) marginal private cost. C) marginal external cost. D) marginal social cost.
Which of the following is classified as a sunk cost?
a. Cost of the next best alternative b. Additional cost of producing an additional unit c. Research costs to determine the implementation of a technology d. Total cost of producing a product
What would happen if employment is continually above or below its full-employment level?
a. the aggregate demand curve would shift to move the economy back to full employment. b. the economy's self-correcting mechanism would move the economy back to full employment. c. the aggregate supply curve would become horizontal. d. the aggregate supply curve would become steeper. e. the economy's self-correcting mechanism would break down.