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.
a
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In general, a "big ticket item" such as a house or new car will
A) tend to have a more inelastic demand the more time that passes. B) tend to have an inelastic demand because spending on the item takes up a large share of the average consumer's budget. C) tend to have an inelastic demand because it has many substitutes. D) tend to have a more elastic demand than a lower-priced good.
By the time the German hyperinflation following World War I ended in November 1923, the price level in Germany was ________ times higher than at the beginning of the hyperinflation
A) 1,000 B) 1 million C) 250 million D) 50 billion
Which of the following is TRUE in perfect competition at long-run equilibrium?
A) P = ATC = MC = MR B) ATC is minimized. C) Economic profit is $0. D) all of the above
When Mr. Peabody decides on the companies to which he will donate his time and money, a ________ issue is being addressed
A) microeconomic B) macroeconomic C) positive economic D) normative economic