If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers
a. True
b. False
Indicate whether the statement is true or false
False
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A long-run aggregate supply curve may graphically be represented as a
A) vertical line. B) a downward sloping line. C) an upward sloping line. D) horizontal line.
Bananas and apples are substitutes. When the price of bananas rises, and a technological advance in apple production occurs at the same time
A) the equilibrium price of apples rises and the equilibrium quantity of apples falls. B) the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. C) the equilibrium quantity of apples rises and the equilibrium price of apples might rise or fall. D) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
Which of the following is most likely to reduce an individual's future spending?
A) Withdrawing money today B) Lending money today C) Paying back a loan in the future D) Withdrawing money in the future
The reason that it is possible for the economy in the above figure to be at E2 rather than at E1 is that
A) in the long run there is always less than full employment. B) in the short run the economy can produce more than it can in a long-run full-adjustment situation. C) AD always shifts outward and never shifts inward. D) the economy must be in a recession.