An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when
a. the supply of the product is relatively inelastic.
b. the supply of the product is relatively elastic.
c. the demand for the product is relatively elastic.
d. either a or c is true.
D
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Assuming all else equal, a decrease in the real interest rate will cause:
A) an upward movement along the credit supply curve. B) a downward movement along the credit supply curve. C) the credit supply curve to shift to the right. D) the credit supply curve to shift to the left.
Game theory is used to analyze the interactions among firms in ________
A) oligopoly B) perfect competition C) monopoly D) monopolistic competition E) Both answers A and D are correct.
Between which pair of countries or continents listed below has real GDP per person converged the most since 1960?
A) Canada and Japan B) United States and Africa C) United States and South America D) Canada and South America
The figure above shows the housing market in the city of Appleville. A rent ceiling of $650 per month is imposed. With the rent ceiling, the deadweight loss in the Appleville housing market is
A) zero. B) at least $15,000 per month. C) at most $7,500 per month. D) 300 units per month.