When a tax is imposed on a good for which the demand is relatively elastic and the supply is relatively inelastic,
a. buyers of the good will bear most of the burden of the tax.
b. sellers of the good will bear most of the burden of the tax.
c. buyers and sellers will each bear 50 percent of the burden of the tax.
d. the effective price paid by buyers will decrease as a result of the tax.
b
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The Economic Freedom Index includes which of the following measures of economic freedom within a nation?
A) Levels of economic regulation B) Freedom of pricing C) Stability of monetary policy D) Taxation levels E) All of the above.
A few economies have the interesting characteristic that exports are more than 100 percent of the economy's GDP. How is this possible?
What will be an ideal response?
The quantity of money in circulation in the United States is managed by
A) The Securities Exchange Commission. B) The United States Treasury. C) The Federal Reserve System. D) Wall Street.
About what proportion of the variation of wages across workers is explained by factors that can be measured? What are the other factors that explain wage differences but are difficult to measure?