When a variable is determined by a factor outside of the function or model being evaluated, it is said to be
A) endogenous.
B) exogenous.
C) unexplained.
D) statistically insignificant.
B
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Describe the government's flows in the circular flow model of the economy
What will be an ideal response?
The graph shown demonstrates a tax on buyers. Who bears the greater tax incidence?
A. The seller
B. The buyer
C. The government
D. The incidence is equally shared between buyer and seller
What is adverse selection?
A) It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. B) It refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off. C) It refers to the private, self-interested actions people that people pursue, which when taken collectively leads to a loss in economic surplus. D) It refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction.
Tax incidence is the actual division of the
A) tax revenues between the federal government and state governments. B) population into different tax brackets. C) burden of the tax between buyers and sellers in a market. D) tax revenues between government agencies.