When elasticities of supply and demand are both equal to 1, the burden of a tax will be:
A. entirely on sellers.
B. half on buyers and half on sellers.
C. mostly on buyers.
D. entirely on buyers.
Answer: B
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If a firm is experiencing diseconomies of scale, its long-run marginal cost curve is upward sloping
a. True b. False
A shortage results when a
A. nonbinding price ceiling is removed from a market. B. binding price ceiling is imposed on a market. C. nonbinding price ceiling is imposed on a market. D. binding price ceiling is removed from a market.
Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's
a. proprietary knowledge. b. technological knowledge. c. human capital. d. physical capital.
Unions can only achieve wage gains by sacrificing employment.
Answer the following statement true (T) or false (F)