If the supply curve is perfectly inelastic and an excise tax is imposed
a. all of the tax is paid by buyers
b. all of the tax is paid by sellers
c. the market price will rise by the amount of the tax
d. the market price will fall by the amount of the tax
e. the tax is divided equally between buyers and sellers
B
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Which is the most likely effect upon the market for cotton of a greatly increased price for corn, which can usually be grown on land suitable for cotton cultivation?
A) The demand for cotton will decrease and the quantity exchanged will fall. B) The demand for cotton will increase and the quantity exchanged will rise. C) The supply of cotton will increase and the quantity exchanged will rise. D) The supply of cotton will decrease and the quantity exchanged will fall. E) The supply of cotton will increase and the quantity exchanged will fall.
Suppose you put $500 in your savings account and earn 4% interest per year. How much will you have in your account after two years? Be sure to round off to the nearest cent
What will be an ideal response?
The LM curve is the combinations of
A) the output gap and the real interest rate for which the money market is in equilibrium. B) the inflation rate and nominal interest rate for which the money market is in equilibrium. C) the inflation rate and real interest rate for which the money market is in equilibrium. D) the inflation rate and real interest rate for which the goods market is in equilibrium.
Shopping at a warehouse, such as Sam's Club or Costco, allows its members to pay very low prices on the goods and services they buy. Customers who shop at such a store incur:
A. transaction costs because they must be members to shop there.
B. no transaction costs because they pay prices that are lower than any other location.
C. transaction costs because they must buy a product in bulk.
D. no transaction costs because members can return any item purchased for any reason.