In which of the following examples, would the tax burden most likely fall on the producer?
a. A producer can significantly increase production by hiring more staff and improving training.
b. A producer’s production method has recently been updated, increasing capacity.
c. A producer’s factory is in an area that significantly limits expansion, and he doesn’t have funds to relocate.
d. A producer’s factory is in an area that has few regulations for development.
c. A producer’s factory is in an area that significantly limits expansion, and he doesn’t have funds to relocate.
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A decrease in unplanned inventory investment for the entire economy equals the excess of
A) output over aggregate supply. B) output over aggregate demand. C) aggregate supply over output. D) aggregate demand over output.
For a given increase in supply, the condition of demand that will result in the most significant change in price is when demand is
A. inelastic. B. elastic. C. perfectly elastic. D. perfectly inelastic.
Under the gold standard, an outflow of gold from the United States
A. would increase the U.S. money supply. B. would create a trade deficit. C. would create a trade surplus. D. would decrease the U.S. money supply.
The condition that exists when all markets in an economy are in simultaneous equilibrium is known as
A. Pareto efficiency. B. partial equilibrium. C. general equilibrium. D. market equity.