If the demand for Insulin is highly inelastic, the burden of a tax on Insulin will be borne almost entirely by sellers.
Answer the following statement true (T) or false (F)
False
When demand is inelastic, buyers bear most of the burden.
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If a household is credit rationed, the MPC out of current disposable income is ________ compared to the MPC out of current disposable income if a household is not credit rationed
A) higher B) lower C) the same D) negative
Which of the following is a final good or service?
a) a haircut purchased by a father for his 12 year-old son b) fertilizer purchased by a farm supplier c) diesel fuel bought for a delivery truck d) Chevrolet windows purchased by a General Motors assembly plant
Which of the following is probably not a normal good?
A. New automobiles. B. Designer jeans. C. Diamond rings. D. Intercity passenger bus travel.
If the MPC is 0.8, the tax multiplier is
A. -8. B. -5. C. -4. D. -1.2.