The burden of a tax on a consumer good with very inelastic demand is usually
a. shifted to the producer.
b. shared equally by the producer.
c. zero since consumers do not decrease their purchases of the good.
d. shifted to the final consumer.
d. shifted to the final consumer.
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If the dollar depreciates relative to the Mexican peso,
A) U.S. exports to Mexico become more expensive. B) U.S. exports to Mexico become less expensive. C) Mexican imports to the United States become less expensive. D) The value of Mexican imports to the United States does not change, but the value of U.S. exports to Mexico increases.
Which of the following is FALSE about firms organized along functional lines?
a. Workers develop functional expertise b. Workers find it difficult to share information within their division c. They foster the exploitation of economies of scale d. None of the above
Households will supply labor as long as the wage they receive is less than the value of their leisure time.
Answer the following statement true (T) or false (F)
The table illustrates the market for Internet service. What is the market price of Internet service? If the government taxes Internet service $15 a month, what is the price the buyer pays?
What is the price the seller rece-ives? Does the buyer or seller pay more of the tax?