If the elasticity of demand for a product equals 3 and the supply is perfectly elastic, then if a tax is imposed on this product,
A) the buyer pays all the tax.
B) the seller pays all the tax.
C) the buyer pays 3/4 of the tax.
D) the seller pays 3/4 of the tax.
E) the buyer pays 4/3 of the tax.
A
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If policy makers do nothing in response to an inflationary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation b. a rapid movement toward lower unemployment and lower inflation c. a slow movement toward higher unemployment and higher inflation d. a slow movement toward lower unemployment and lower inflation
Economic growth is represented by a:
A. leftward shift of a production possibilities curve. B. rightward shift of the long-run aggregate supply curve (LRAS). C. horizontal long-run aggregate supply curve (LRAS). D. downward shift of an aggregate production function.
Banks
A. have no role in the money creation process and never have. B. have no role in the money creation process, though they once did. C. create money because they take deposits and make loans. D. create money because they are the ones that print it.
Refer to the information provided in Table 2.1 below to answer the following question(s). Table 2.1?KrystalMarkWriting Poems812Writing TV Commercials24Refer to Table 2.1. To maximize total production,
A. Krystal should write poems and write TV commercials, but Mark should only write poems. B. Krystal should specialize in writing TV commercials, and Mark should specialize in writing poems. C. Mark should specialize in writing TV commercials, and Krystal should specialize in writing poems. D. Krystal and Mark should both split their time between writing poems and writing TV commercials.