Tax incidence:
A. depends on the relative elasticity of the supply and demand curves in a market.
B. depends on whether it is a buyers tax or sellers tax that is being imposed.
C. depends on the amount of tax revenue generated once administrative burdens are taken into account.
D. depends on whether the tax revenue is greater than the deadweight loss caused by the tax.
A. depends on the relative elasticity of the supply and demand curves in a market.
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Mergers harm society
A) True. Firms merge to avoid antitrust laws and increase their prices. B) Maybe. It depends on whether the effect on prices is larger from reducing competition or increasing efficiency. C) False. Firms gain economies of scale and pass the price savings on to their customers. D) True. Total surplus is reduced when firms merge.
Richer economies often have more middlemen. Economic thinking indicates that such economies...
What will be an ideal response?
GDP is a measure of:
A. domestic production. B. changes in the general level of prices. C. material well-being. D. social welfare.
Which of the following is true for a monopolist?
A) Being the only seller in the market, the monopolist faces a perfectly inelastic demand curve. B) Being the only seller in the market, the monopolist faces a perfectly elastic demand curve. C) Being the only seller in the market, the monopolist faces the market demand curve. D) Being the only seller in the market, the monopolist faces a downward-sloping demand curve that lies below the marginal revenue curve.