Who bears the majority of a tax burden depends on the relative elasticity of supply and demand
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that in Germany, the opportunity cost of producing a gallon of beer is 5 gallons of wine. In Italy, the opportunity cost of producing a gallon of beer is 3 gallons of wine
a. What is the opportunity cost of producing a gallon of wine for Germany? b. What is the opportunity cost of producing a gallon of wine for Italy? c. Which country has a comparative advantage in the production of beer? d. Which country has a comparative advantage in the production of wine?
Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
a. less than $0.50. b. $0.50. c. between $0.50 and $1. d. $1.
Which of the following probably slowed NAFTA's effect on the wages of Mexican workers?
a. the Mexican peso crisis in which Mexico's currency fell greatly in value b. the reluctance of the U.S. government to allow guest workers c. the Iraq war d. so much illegal immigration
Refer to the information provided in Table 33.1 below to answer the question(s) that follow. Table 33.1
Refer to Table 33.1. Before specialization, Mexico produces 160 bushels of oranges and 40 bushels of bananas, and Guatemala produces 30 bushels of oranges and 40 bushels of bananas. After specialization, the increase in banana production is
A. 10 bushels of bananas. B. 15 bushels of bananas. C. 20 bushels of bananas. D. 40 bushels of bananas.