The more elastic the supply of a product, the more the actual burden of a tax on the product will:
A. fall on sellers.
B. fall on buyers.
C. fall equally on both buyers and sellers.
D. create a smaller deadweight loss (or excess burden).
Answer: B
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If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $2,800 B. $46,050 C. $250,750 D. $18,420
All of the following statements are examples of normative economic analysis except
A) as the demand for emergency room nurses increases, more students are choosing to enroll in nursing school. B) to provide better care, doctors should be required to limit the number of patients they see each day. C) people should be able to choose whether they want to purchase health insurance. D) prescription drugs are too expensive and the government needs to regulate prices in the pharmaceutical industry.
Using the data in the above table, what is the average product of three employees?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 12 pizzas per hour
The simple circular flow model shows that workers and owners of land and capital offer their services through: a. product markets. b. factor markets
c. money markets d. government.