Faced with a shortage of funds to pay claims, the workman’s compensation systems in many states have been forced to raise the workman’s compensation tax rate substantially. The tax is paid by employers. Employers have complained that they cannot afford the tax and threaten to go out of business. Assuming the supply of labor is very inelastic, one can argue that ultimately the burden of this tax actually will rest
A. mostly on workers.
B. mostly on employers.
C. about 50/50 on workers and employers, like the Social Security tax.
D. all on employers by statute.
Answer: A
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If an industry is a natural monopoly and regulators decide that the firm must price at marginal cost, then consumers will be ________ off than if the firm was unregulated and the firm's owners will be ________ off than if it was unregulated
A) better; better B) better; worse C) worse; better D) worse; worse
If two small perfectly competitive firms merge, the merged firm will be:
a. a price-taker. b. a market leader. c. a price-discriminator. d. an oligopoly.
At levels of GDP above full employment, the federal budget would usually be in a deficit position
a. True b. False Indicate whether the statement is true or false
The opportunity cost of money is:
A. the price level. B. the nominal interest rate. C. the time spent going to the bank to withdraw funds. D. the fees charged by banks to provide checking services.