When the supply of a good is represented by a horizontal line, the burden of a tax is:
a. shared equally between the buyers and the sellers.
b. placed entirely on the buyers
c. placed entirely on the sellers.
d. more on the buyers than on the sellers.
c
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Trade between two nations:
A) results in the maximization of total production. B) reduces global production. C) leads to a maximization of production in one nation and minimization of production in the other. D) is inefficient compared to when both do not indulge in international trade.
An increase in the supply of labor will, everything else equal,
a. increase the full-employment level of output b. decrease the full-employment level of output c. move the economy from a recession toward full employment d. reduce total employment e. have no impact on total employment
When a firm is a price taker, changes in its sales quantity have ______ effect on the price it can charge.
A. a positive B. a negative C. no D. little
Suppose there is proposed legislation that would subsidize the domestic commercial aircraft manufacturing industry in the U.S., to be funded with a new 1 percent national sales tax. Which of the following categories best fits this proposed legislation?
a. Traditional public goods legislation b. Special-interest legislation c. Competing-interest legislation d. Populist legislation