A tax places a wedge between the price buyers pay and the price sellers receive
a. True
b. False
Indicate whether the statement is true or false
True
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Explain the condition where society would be better off when more of a good is produced
What will be an ideal response?
If the quantity of walkie-talkies supplied increases by 5 percent when price increases by 12 percent, then
A) the walkie-talkie supply curve will shift to the right. B) the supply of walkie-talkies is elastic. C) the supply of walkie-talkies is inelastic. D) the walkie-talkie supply curve will shift to the left.
________ quantity theory of money suggests that the demand for money is purely a function of income, and interest rates have no effect on the demand for money
A) Keynes's B) Fisher's C) Friedman's D) Tobin's
According to the rational expectations school, a correctly anticipated expansionary monetary policy will:
a. increase prices and real output b. increase real output only in the short run. c. have no effect on prices or real output. d. decrease prices and real output. e. lead only to a higher price level.