If the demand curve for a good is horizontal, a tax is levied on this product is
A) split between the buyers and the sellers but not evenly so that either the buyer or the seller pays more.
B) split evenly between the buyers and the sellers.
C) paid entirely by buyers.
D) paid entirely by sellers.
E) not paid by either the buyers or the sellers.
D
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In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
A) tastes and preferences. B) military capabilities. C) the size of their economies. D) relative abundance of factors of production. E) labor productivities.
Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?
a. spending on education b. the purchase of stocks and bonds c. the purchase of a new house d. the purchase of durable goods such as stoves and washing machines
An asset of a bank is
A. the value of money that is on deposit. B. the amount a depositor may legally borrow. C. something of value that the bank owes to a depositor. D. something of value that a bank owns.
A monopoly has produced a product with a patent for the last few years. The patent is going to expire. What will likely happen to the demand for the patent-holder's product when the patent runs out?
A. Nothing. B. Demand will increase. C. Demand will decline. D. None of the answers is correct.