When the labor supply is very inelastic, the payroll tax is
A. borne entirely by the employer.
B. split fairly evenly between the employer and the employee.
C. borne mostly by the employer.
D. borne mostly by the employee.
Answer: D
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Explain how globalization has benefitted consumers but has also widened the gap between rich and poor in the United States
What will be an ideal response?
With respect to Figure 7-2, an increase in government spending
a. shifts the IS curve to the left by G(? b/1 ? b). b. shifts the IS curve to the right by G(1 ? b/1 ? b). c. shifts the IS curve to the right by G(1/1 ? b). d. does not shift the IS curve.
A deadweight loss of consumer and/or producer surplus occurs when:
a. producers fail to maximize profits. b. mutually beneficial transactions cannot be completed. c. consumers do not maximize their utility. d. the price of inputs increases.
Municipal solid waste (MSW)
a. refers to the collection of hazardous and toxic wastes disposed of in local communities b. can cause problems if improperly managed c. poses no health or ecological risks to society d. is a problem only in developing countries