The more inelastic is demand and supply, the:
A. larger is the efficiency loss of an excise tax.
B. smaller is the efficiency loss of an excise tax.
C. higher is the proportion of an excise tax paid by consumers.
D. smaller is the proportion of an excise tax paid by producers.
Answer: B
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Answer the next question(s) based on the data contained in the following table.Units of LaborTotal ProductProduct Price00$2.201152.002281.803391.604481.405551.206601.10Assume that the firm is hiring labor in a purely competitive market. If the wage rate is $20, how many workers will the firm choose to employ?
A. 5 B. 4 C. 3 D. 2
With respect to income redistribution programs, what is meant by "The Big Tradeoff," and what causes it?
What will be an ideal response?
If the quantity of a good supplied is not very sensitive to the price of the good, economists say the supply of the good is relatively
a. inelastic. b. elastic. c. robust. d. inverse.
In a particular economy, the price index was 120 in 2012 and 130 in 2013 . Which of the following statements is correct?
a. The economy experienced a rising price level between 2012 and 2013. b. The economy experienced a higher inflation rate between 2012 and 2013 than it had experienced between 2011 and 2012. c. The inflation rate between 2012 and 2013 was 10 percent. d. The base year is 2011.