Suppose that in a particular market, the supply curve is highly elastic and the demand curve is highly inelastic. If a tax is imposed in this market, then the
a. buyers will bear a greater burden of the tax than the sellers.
b. sellers will bear a greater burden of the tax than the buyers.
c. buyers and sellers are likely to share the burden of the tax equally.
d. buyers and sellers will not share the burden equally, but it is impossible to determine who will bear the greater burden of the tax without more information.
a
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Which of the following is a deficit item on the U.S. balance of payments accounts?
A) A U.S. firm sells a product to a Mexican firm. B) An Italian tourist in Miami purchases a beach ball. C) A Spaniard buys 100 shares of Ford stock. D) A U.S. resident buys gold from the Japanese central bank.
Considering perfect competition, monopolistic competition, and monopoly, which of the market structures results in production of the welfare-maximizing level of output?
Mallard Corporation had a price-earnings ratio of 15, paid a dividend of $3, and retained earnings of $1 a share. What was the price of a share of Mallard stock?
a. $15 b. $30 c. $45 d. $60.
Which of the following would increase public saving?
A) an increase in taxes B) an increase in transfers C) an increase in government purchases D) All of the above would increase public saving.