If the demand curve is more price elastic than the supply curve in a particular market, will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?
The sellers will bear the larger burden of the tax.
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If the nominal interest rate is ________ and the inflation rate is ________, the real interest rate is positive
A) zero; positive B) negative; zero C) zero; negative D) negative; negative
A special interest will be able to influence a legislature's actions _____
a. only if there are not special interests on the other side of the issue b. if enough members of the legislature are corrupt c. up to the point where the marginal political support they provide equals the marginal political opposition of other special interests d. as long as the marginal political support they provide to the legislature is positive
When a tax alters consumers' incentives, it is:
A. always the explicit purpose of the policy. B. sometimes a side effect of a tax designed to raise revenue. C. called a sin tax. D. meant to encourage increased consumption.
Among the following, which would not be considered part of the investment component of GDP?
a. manufacturers' equipment b. buying corporate stock c. new houses d. business structures