Severance taxes do not allow companies to shift any the tax burden to demanders because the supply of natural resources is completely inelastic
a. True b. False
b
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A boss can type 200 words per minute and sell 2000 units of the company's product in one day. His assistant can type 150 words per minute and sell 1000 units of the company's product in one day. Discuss who has absolute and comparative advantages in the "production" of typing and selling.
What will be an ideal response?
An economy may be operating at a point inside the production possibilities curve if: a. technological progress enables the economy to produce quantities of output otherwise unattainable. b. a substantial amount of labor is unemployed
c. a substantial amount of machinery is idle. d. either b. or c. occur.
States rely primarily on income taxes as a source of revenue.
Answer the following statement true (T) or false (F)
Based on price setting behavior, which of the following will cause a reduction in the price level?
A) an increase in productivity B) a reduction in the nominal wage C) a reduction in the markup D) all of the above E) none of the above