If the market for a good consists of a downward sloping demand curve and a vertical supply curve, sellers will have to pay the whole amount of a newly imposed tax.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The term “satisficing” for decision-making behavior by many firms was coined by
A. Milton Friedman. B. Adam Smith. C. Herbert Simon. D. Alan Greenspan.
A decrease in the marginal factor cost of labor will
A) lead to an decrease in the quantity demanded of labor. B) induce a firm to hire fewer workers. C) induce a firm to hire more workers. D) cause the value of the marginal product of labor to decrease.
Contractionary fiscal policy with floating exchange rates and very low capital mobility leads to currency depreciation.
Answer the following statement true (T) or false (F)