Tax incidence does not depend on _____.
What will be an ideal response?
The tax law
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If an economy has a trade policy of a fixed exchange rate, then its monetary and fiscal policies are:
A. more restricted when dealing with domestic goals. B. less restricted when dealing with domestic goals. C. independent of the trade policy. D. independent of the trade regime.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
Answer the following questions true (T) or false (F)
1. An economic model is a complex version of reality used to analyze real-world economic situations. 2. Optimal decisions are made at the point where marginal benefit is maximized. 3. If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps, then the difference of $300 is the marginal cost of producing the 5th lamp.
Most economists believe that changes in the price level have
A) no effect on the quantity of output supplied in either the short run or the long run. B) an effect on the quantity of output supplied in the short run, but not in the long run. C) an effect on the quantity of output supplied in the long run, but not in the short run. D) an effect on the quantity of output supplied in both the short run and the long run.