A tax imposed on the buyers of a good will
a. raise both the price buyers pay and the effective price sellers receive.
b. raise the price buyers pay and lower the effective price sellers receive.
c. lower the price buyers pay and raise the effective price sellers receive.
d. lower both the price buyers pay and the effective price sellers receive.
b
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The monthly mortgage payments made by a homeowner are
A) always sunk costs because the costs of constructing the house lie entirely in the past. B) marginal costs if the house is new but sunk costs if it was purchased from a previous owner. C) marginal costs of continuing to own and occupy the house. D) not marginal costs because the house will continue to exist whether or not the payments are made. E) sunk costs only if all the bills for earlier construction work have been fully paid.
The concept of cost-push inflation cannot be explained by the aggregate expenditure model
a. True b. False Indicate whether the statement is true or false
The monopsonist's labor supply curve is the same as the
a. wage rate b. marginal revenue product curve c. marginal physical product curve d. market labor demand curve e. market labor supply curve
Why is wage and price flexibility crucial to the idea of the "invisible hand"?
What will be an ideal response?