Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if:
A. Demand is perfectly elastic
B. Supply is perfectly elastic
C. Supply and demand have the same price elasticity
D. Demand is perfectly inelastic
A. Demand is perfectly elastic
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The manager of a U.S. office building hires a local company owned by a recent Canadian immigrant to handle landscape maintenance. This is a form of
A) domestic outsourcing. B) vertical integration. C) international outsourcing. D) insourcing.
In the tourist-trap model, a consumer might pay more than marginal cost for a good sold in a competitive market if the cost of possibly finding the good cheaper is more than the markup over marginal cost
Indicate whether the statement is true or false
In order to achieve social efficiency, the size of an effluent tax should be based on:
a. the external cost created by the pollutant. b. people's willingness to pay for a cleaner environment. c. the expense of installing new "green" equipment. d. the number of free riders in the industry.
Full employment to the classical school means that all workers
a. in the labor market are employed b. at any given wage rate are or will be employed c. who work at the equilibrium wage rate would not have been willing to work for less or more d. who are willing to work at the equilibrium wage rate are employed e. who are in the labor force are employed all the time