If the elasticity of demand is much greater than the elasticity of supply, an excise tax levied on the suppliers will
a. cause the suppliers to incur a greater burden of the tax than demanders
b. cause the demanders to incur a greater burden of the tax than suppliers
c. the burden of the tax will be shared equally between the suppliers and the demanders
d. cause the entire burden of the tax to rest on the demanders
e. Without more information as to the amount of the excise tax, who will incur a greater burden will be unclear
A
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When the Fed ________ the federal funds rate, other short-term interest rates ________ and the exchange rate ________
A) lowers; rise; rises B) raises; fall; rises C) raises; rise; rises D) raises; rise; falls E) lowers; rise; falls
The Federal Reserve System functions as America's
a. tax collector. b. stock and bond market. c. savings bank. d. central bank.
Which of the following most correctly states the law of demand?
A) As the price falls all other things unchanged, demand will go up. B) As the price goes up, all other things unchanged, demand will go down. C) As the price falls, all other things unchanged, the quantity demanded will go down. D) As the price falls, all other things unchanged, the quantity demanded will increase.
Pricing and output determination under an oligopoly is more complicated than pricing and output determinations in other industries. The primary reason for the complication is the:
A. fewness of firms. B. brand loyalty of consumers. C. powerful effect of advertising. D. mutual interdependence of firms.