A pollution tax will:
A. always be paid entirely by producers.
B. not change the price buyers pay for a good.
C. be shared between buyers and sellers.
D. always be paid entirely by buyers in the form of a price increase equal to the amount of the tax.
Answer: C
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Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?
A) It has doubled. B) It has decreased. C) It has increased by more than eight times. D) It has increased twenty times.
If the real interest rate is 3% and the expected inflation rate is 6%, then the nominal interest rate is
A) 0.5%. B) 2%. C) 3%. D) 9%.
The number of brands of identical products will most likely increase as
A) the number of informed consumers increases. B) the cost of producing many brands decreases. C) the number of uninformed consumers decreases. D) None of the above.
A price system is considered to be efficient when
A) it fails to have the goods that consumers want. B) an underground market develops. C) all resources are allocated to the highest-valued uses. D) firms produce more than what consumers want.