If the government institutes a specific tax for a good that has a perfectly elastic demand curve
A) the producer passes the entire tax on to the consumer.
B) the producer must absorb the entire tax.
C) the producer can generally only pass part of the tax onto the consumer.
D) the equilibrium price drops.
B
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According to the text, approximately what percentage of U.S. net public debt is held by foreign residents?
A) 50% B) 20% C) 90% D) 800%
Which of the following is not a reason why the prospects for the further expansion of developing country commodity exports are likely to be limited?
(a) Low income elasticities for these products. (b) Low likelihood of development of further synthetic substitutes. (c) Continued agricultural protection despite trade agreements. (d) Declining terms of trade.
Health care costs have been increasing dramatically in the U.S.
A. True B. False C. Uncertain
Incorporation of expectations into economic decision making and the economic experience of recent decades indicate that in the long run
a. inflation relates directly to unemployment. b. inflation is inversely related to unemployment. c. there is no trade-off between inflation and unemployment. d. high unemployment is a primary cause of inflation.