As the demand curve becomes steeper, the proportion of a sales tax paid by the seller
A. decreases.
B. stays the same.
C. increases.
D. gets closer to zero.
Answer: A
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Which of the following statements is correct?
A. Both perfectly competitive and monopolistic firms are price makers. B. Both perfectly competitive and monopolistic firms are price takers. C. A perfectly competitive firm is a price taker, while a pure monopoly is a price maker. D. A perfectly competitive firm is a price maker, while a pure monopoly is a price taker.
Which of the following is most likely to be an example of causation?
A) A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future. B) A soccer player scores 4 goals when he wears red socks. He concludes that the red socks helped him score the goals. C) A firm producing CFLs installs new machinery. The per-day production of CFLs increases. D) The crime rate is high in a country. The literacy rate is high as well.
When firms differentiate their products, they
a. provide information to consumers with no additional use of productive resources b. always increase their profits c. always create real differences among products d. frequently create artificial or superficial differences among products, thus raising production costs e. usually strain the physical capacity of their plants
M2 is both larger and less liquid than M1
a. True b. False Indicate whether the statement is true or false