On Green Island, the demand for pencils is perfectly elastic and the supply of pencils is perfectly inelastic. If a sales tax on pencils is introduced
A) the tax is split evenly between the buyers and sellers.
B) the buyers pay the entire tax.
C) no one pays the tax.
D) the sellers pay the entire tax.
D
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
The producer price index measures the cost of a basket of goods and services
a. typically produced in the economy. b. produced for a typical consumer. c. sold by producers. d. bought by firms.
Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week(millions of gallons) Price pergallon 6 $3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 As shown in Exhibit 3-5, the price and quantity supplied by sellers of Tucker's Cola have a(n) ____ relationship.
A. direct. B. inverse. C. negative. D. zero.
Refer to the information provided in Figure 6.13 below to answer the question(s) that follow.
Figure 6.13Refer to Figure 6.13. Assume Ellen has two products available, pizza and hamburgers. Ellen is always willing to trade one pizza for one hamburger regardless of how many pizzas and hamburgers she has. The curve in Panel ________ represents her indifference curve.
A. A B. B C. C D. D