If the government imposes a $3 tax in a market, the buyers and sellers will share an equal burden of the tax
a. True
b. False
Indicate whether the statement is true or false
False
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When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is
A) inelastic. B) unit elastic. C) elastic. D) irrelevant. E) undefined.
Charging different prices to different consumers for the same product when the price differences are not due to differences in cost is called arbitrage
Indicate whether the statement is true or false
Given the average tax rate t, a general expression for the budget deficit is
A) tG - Y. B) Y - tG. C) G - tY. D) Y - (G/t).
Comparing the cost of the same basket of goods in different locations:
A. can create a price index to evaluate purchasing power across different locations. B. is based on the theory of purchasing power parity. C. can be used for international price comparisons. D. All of these statements are true.