When a unit tax of $2 is levied on a product
A) the entire $2 is paid by the consumer.
B) the entire $2 is paid by the producer.
C) both the consumer and producer pay $2 each.
D) the consumer pays part of the $2 and the producer pays the rest.
D
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In the market for loanable funds, the seller is considered to be
A) the lender. B) the borrower. C) the lender or the borrower depending upon the use to which the funds are put. D) the lender or the borrower depending upon whether interest rates are rising or falling.
David Ricardo discovered that two countries can still gain by trading even if one country is more efficient in the production of every commodity. Ricardo's discovery is called the law of
a. comparative advantage. b. absolute advantage. c. compensating balances. d. increasing returns.
Compare and contrast the suitability of different market structure for fostering technological advance
What will be an ideal response?
The price of A falls by 2 percent, and the quantity demanded of A increases by 2 percent. Meanwhile, the quantity demanded of B increases by 2 percent too. We would conclude that
A) demand for A is elastic, and A and B are substitutes. B) demand for A is elastic, and A and B are complements. C) demand for A is unit-elastic, and A and B are complements. D) demand for A is inelastic, and A and B are unrelated.