When a tax is placed on buyers:
A. the resulting price paid by consumers is the same as if the tax were placed on sellers.
B. the equilibrium quantity will unequivocally decrease.
C. the resulting price received by sellers is the same as if the tax were placed on sellers.
D. All of these are true.
Answer: D
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A model in which workers won't be concerned about the possibility of being fired if they don't work hard, because their wage is so low, is called
A) a cost—benefit model. B) a job—stress model. C) a gift—exchange model. D) a shirking model.
Which of the following is TRUE about a firm in monopolistic competition in the long run?
A) P = MC B) P = MR C) ATC = MC D) P = ATC E) MC = ATC
A major reason for the existence of financial intermediaries is
A) transactions costs that would be incurred without their existence. B) the fees charged by dealers and brokers in direct finance are so high. C) the problem of symmetric information. D) to assist borrowers in buying securities in financial markets.
For the additive social welfare function to yield results, we must assume
A. individuals have identical utility functions. B. individuals' utility functions have diminishing marginal utility of income. C. the total amount of income available is fixed. D. all of these answer options are correct.