The difference in the price the buyer pays and the price the sellers keep in the presence of a tax is called:
A. a tax differential.
B. a tax wedge.
C. the tax incidence.
D. the tax burden.
B. a tax wedge.
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A believer in the need for a CGRR of the money supply policy must be ________ about the ability of the private economy to self-stabilize and ________ about the accuracy of discretionary stabilization policy
A) optimistic, optimistic B) optimistic, pessimistic C) pessimistic, optimistic D) pessimistic, pessimistic
The concept that suggests the consumption of the first few units of any good tends to bring a higher level of utility to a person than consumption of later units is the:
a. law of diminishing marginal utility. b. law of supply. c. law of demand. d. law of consumption.
A house is $100,000, a computer is $2,000, and a car is $20,000. In this context, money is principally functioning as a
A) unit of account. B) store of value. C) medium of exchange. D) none of the above
Which of the following is the price at which the trader is willing to sell foreign currency?
A) offer B) bid C) spread D) cross rate