If butter and margarine are substitutes, then an increase in the price of butter will reduce the demand for margarine.
Answer the following statement true (T) or false (F)
False
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An endowment:
A. is the bundle of goods an individual starts out with before trading. B. is the bundle of goods an individual ends up with after trading. C. is the bundle of goods an individual inherits. D. is the bundle of goods and individual donates.
According to the CPI basket, the largest item in the households' budgets is ?
A) apparel.
B) education.
C) food.
D) transportation.
E) housing.
Which of the following is an argument that the incidence of corporate taxation falls entirely on consumers?
A. Most taxes on consumers are collected by corporations through sales taxes. B. Corporations pass their tax burdens on to consumers because consumers ultimately work for the corporations. C. Corporations always evade taxes so that consumers ultimately bear the tax burdens as taxpayers. D. Corporations pass their tax burdens on to consumers by charging higher prices equal to the amount of the tax.
A firm in an oligopoly is similar to a monopoly in that:
A. Both firms do not face competition from others B. Both firms could have significant market power and control over price C. Both firms face very inelastic demand for their products D. Both firms do not need to advertize