There would be no excess burden from a tax if demand were
A. perfectly elastic.
B. unitarily elastic.
C. upward sloping.
D. perfectly inelastic.
Answer: D
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What factors determine the demand for money in the Baumol-Tobin analysis of transactions demand for money? How does a change in each factor affect the quantity of money demanded?
What will be an ideal response?
The best measure of the standard of living is generally considered to be
A) labor productivity. B) the average duration of a typical business cycle. C) the labor force participation rate. D) real GDP per capita.
In the shortrun (specificfactors) model, foreign direct investment is expected to ________ the marginal product of labor and ________ wages in the receiving country.
a. decrease; decrease b. increase; decrease c. decrease; increase d. increase; increase
All of the following are true if both the upstream and downstream firm have market power except which one?
A) Both the upstream firm and the downstream firm set a price that exceeds their respective marginal costs. B) If the two firms were to merge, the combined firm would earn the same profit than if they did not merge. C) This situation is referred to as a successive monopoly. D) This situation is referred to as double marginalization.