If the producers bear a smaller tax incidence than the buyers in a market, which of the following must be true?
A. It must be a market for inferior goods.
B. It must be a market for luxury items.
C. Their supply curve must be more elastic than the buyers demand curve in this market.
D. Their supply curve must be less elastic than the buyers demand curve in this market.
C. Their supply curve must be more elastic than the buyers demand curve in this market.
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Financial intermediaries reduce the costs of negotiation by
A) investing in a large number of projects with independent returns. B) gaining expertise in evaluating and monitoring investments. C) investing in a small number of projects with independent returns. D) pooling funds.
If a firm accumulates unwanted inventories, then it
A) must hire more workers. B) will increase its production. C) has actual investment equal to its planned investment. D) will decrease its production. E) has actual investment that is less than its planned investment.
When a $100 bill is printed by the Fed, the Fed has a financial liability because the:
A. Fed issued the bill. B. bill will not be counted as part of M1. C. Fed is part of the government. D. Fed has the printing machine.
The government's $168 billion plan to stimulate the softening economy in 2008 failed partly because the tax cuts were temporary
a. True b. False Indicate whether the statement is true or false