Legislators are indifferent about placing a unit tax on the suppliers of a good or the demanders. If a tax is placed on the suppliers of the good _____
a. suppliers will pay the entire tax
b. suppliers will pay more than if the tax were initially placed on the demanders
c. suppliers will pay exactly what they would pay if the tax were initially placed on the demanders
d. suppliers will pay less than if the tax were initially placed on the demanders
c
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The cost-output elasticity is used to measure:
A) economies of scope. B) economies of scale. C) the curvature in the fixed cost curve. D) steepness of the production function.
An industrial union is a union composed of workers in the same skilled profession
a. True b. False
An economic theory is tested by: a. assessing the realism of its assumptions
b. polling economists to see if there is consensus as to the validity of the hypothesis. c. comparing and contrasting its simplicity with related theories. d. comparing its predictions with real-world data.
The strict crowding-out argument relies on the assumption that
A. the government must raise taxes to pay for spending, and the tax increase crowds out the stimulative effect of increased spending. B. the total flow of saving is a fixed amount. C. investment is invariant to interest rates, but very dependent on aggregate spending. D. consumption will rise to absorb most of an increase in income, and investment will accordingly fall.