If a product has zero external costs, then marginal social cost equal marginal private cost
Indicate whether the statement is true or false
TRUE
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A tax is imposed on wine. Sellers will bear no burden from this tax if the: a. demand for wine is perfectly inelastic
b. demand for wine is perfectly elastic. c. demand for wine is unit elastic. d. supply curve for wine is perfectly inelastic.
If the price of good X becomes lower, then the level of consumer surplus becomes
A. unchanged. B. lower in the short-run but higher in the long run. C. lower. D. higher.
Education and training are examples of investment in human capital.
Answer the following statement true (T) or false (F)
What happens as the result of a shortage?
A) There is downward pressure on prices. B) There is upward pressure on prices. C) Consumers begin to view the good as an inferior good because they have a hard time finding it. D) Supply of the good decreases.