A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the
A) tax is paid by the seller to the government and is, therefore, like a cost of production.
B) tax is actually shifted entirely onto the buyer who can afford only a smaller supply.
C) higher price causes entry into the market.
D) tax shifts the demand curve leftward.
A
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The only firms that do not have market power are
A) firms in perfectly competitive markets. B) firms in industries with low barriers to entry. C) firms that do not advertise their products. D) firms that sell identical products.
If during the past decade the average rate of monetary growth has been 5% and the average inflation rate has been 5%, everything else held constant, when the Federal Reserve announces that the new rate of monetary growth will be 10%, the adaptive
expectation forecast of the inflation rate is A) 5%. B) between 5 and 10%. C) 10%. D) more than 10%.
What would the profits be for Mattie's Dairy if Irene does not enter the market?
a. 5million b. 10million c. 15million d. Zero
The invisible hand ensures that economic prosperity is distributed equally
a. True b. False Indicate whether the statement is true or false