If a unit excise tax is placed on a good for which the demand is very unresponsive to a price change, then
A) the government generally pays the majority of the tax.
B) the consumers generally pay the majority of the tax.
C) the producers generally pay the majority of the tax.
D) producers and consumers pay equal portions of the tax.
B
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Every day, we make many choices. We can't avoid having to make choices because _______.
a. Our wants exceed the resources available to satisfy them.
b. We cant find enough things to do to fill our day
c. There is too much variety
d. There is too much available
e. There are too many TV channels
John is buying a scented candle for his girlfriend. John thinks about her flower-scented perfume, flower-scented air spray, and flower-scented shampoo. He decides to buy her a flower-scented candle. His behavior is:
A. using a heuristic called a rule of thumb. B. an example of the endowment effect because she already has flower-scented goods. C. an example of loss aversion because he doesn't want to make the wrong choice. D. an example of status quo bias because he doesn't want to deviate from her normal choice of scent.
Which of the following is true?
A) Voters have a strong incentive to make well-informed choices when voting in state and federal elections. B) Policies favored by a majority will assure that resources are allocated efficiently. C) The rational ignorance effect indicates that voters have very little incentive to be well informed when making political choices. D) Political action is based on voluntary exchange and mutual agreement.
The adjustment in exchange rate conversions that takes into account differences in the true cost of living across countries is called
A. purchasing power parity. B. currency-adjusted purchasing power. C. raw purchasing power. D. nominal purchasing power.