Other things being equal, the less elastic demand is:
a. the lower the deadweight loss is resulting from the imposition of a given tax on a product.
b. the greater the burden is of the tax borne by consumers
c. the greater the tax revenue collected by the government is.
d. all of the above
d
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The principles of comparative advantage and specialization only apply to trade between different nations
Indicate whether the statement is true or false
Refer to Figure 10.1. If three lights are installed, the people who were responsible for the light being installed each receive a payoff of
A) 4. B) 6. C) 8. D) 10.
Consider an industry with 5 firms. Firm A has sales of $6 mil., firm B has sales of $12 mil., firm C has sales of $30 mil., firm D has sales of $50 mil. and firm E has sales of $2 mil. The Herfindahl-Hirschman index for this industry is
a. 3580 b. 3584 c. 2500 d. 3400 e. unknown, not enough information to tell
When externalities are present in a market, the well-being of market participants
a. and market bystanders are both directly affected. b. and market bystanders are both indirectly affected. c. is directly affected, and market bystanders are indirectly affected. d. is indirectly affected, and market bystanders are directly affected.