If the supply of a good is perfectly inelastic, then suppliers will bear the full burden of an excise tax
a. no matter how elastic the demand for the good is.
b. only if demand is perfectly elastic.
c. only if demand is perfectly inelastic.
d. only if the government forbids them to raise the price of the good.
a
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In the Ricardian model, if a country's trade is restricted, this will cause all EXCEPT which?
A) limited specialization and the division of labor B) reduced volume of trade and reduced gains from trade C) nations to produce inside their production possibilities curves D) a country to produce some of the product of its comparative disadvantage E) raised costs as more diverse product is produced internally
Suppose we have the following information about a car manufacturer: car sales $1000M, steal purchases $600M, wages $300M, interest on business loans $50M, and profits $50M. What is its contribution to GDP using the product approach?
A) $1000M B) $600M C) $400M D) $350M
Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John decides to produce 1 red rubber ball, at which plant will he produce it?
A) California B) Florida C) Montana D) He is indifferent between California and Florida. E) He is indifferent between Florida and Montana.
In the real world, it is likely that wage negotiations:
A. drag on for years to see which side is more patient. B. often end with the company enjoying a larger payoff, since they can afford to be more patient. C. often end with the worker's enjoying a larger payoff, since they are not losing as much in profit as the company. D. do not drag on for years.