Due to capitalization, the burden of future taxes may be borne by current owners of an inelastically-supplied, durable commodity such as land.
A. True
B. False
C. Uncertain
A. True
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It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate this claim.
What will be an ideal response?
Suppose that you're the manager of a firm. You notice that when you raised your price from $10 to $11, sales fell from 500 to 400. Should you raise your price more?
What will be an ideal response?
Why does price discrimination work in the sale of seats to children and adults at baseball games, but not to the sale of food at concession stands to children and adults at baseball games?
What will be an ideal response?
Refer to the table below. What would be the annual inflation rates in Years 2, 3, and 4, respectively?
A. 10, 9.1, and 8.3 percent
B. 10, 8.3, and 7.7 percent
C. 10, 10, and 10 percent
D. 9.5, 8.3, and 6.6 percent