If the government institutes a specific tax for a good that has a perfectly inelastic demand curve
A) the producer passes the entire tax on to the consumer.
B) the producer must absorb the entire tax.
C) the producer can generally only pass part of the tax onto the consumer.
D) the equilibrium price drops.
A
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Net exports are the sum of
A) the current account balance and capital account balance. B) the balance of payments accounts. C) exports and imports. D) the private sector balance and the government sector balance. E) the current account balance and the official settlements account balance.
Quantitative analysis of relevant data show that economic problems for farmers in the last half of the 19th century included:
a. falling prices of farm products relative to other prices. b. rising real interest rates. c. rising prices for consumer goods. d. rising prices for farm equipment. e. All of the above
Real business cycle theory emphasizes the effect of ________ on real Gross Domestic Product (GDP).
A. the money supply B. aggregate supply shocks C. government spending D. aggregate demand shocks
Stock prices may rise from a reduction in interest rates because:
A. the present value of future earnings will increase. B. financial market participants are less optimistic about future earnings. C. the present value of future earnings will decrease. D. stockholders will expect lower future earnings.