The burden of a tax will fall primarily on buyers when the
a. demand for the product is highly inelastic and the supply is relatively elastic.
b. demand for the product is highly elastic and the supply is relatively inelastic.
c. tax is legally (statutorily) imposed on the seller of the product.
d. tax is legally (statutorily) imposed on the buyer of the product.
A
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In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.05). When ? = 0.06 and ?e = 0.03, the unemployment rate is
A) 0.04. B) 0.05. C) 0.06. D) 0.07.
Suppose 10% of all workers are of high ability. If a firm knows a worker's ability, workers of low ability are paid $20,000 and workers of high ability are paid $30,000. A college degree can signal ability, and the cost of the degree is $11,000
Will there be a pooling equilibrium or a separating equilibrium?
In the classical model, changes in interest rates will always ensure that
A) consumption equals production. B) saving equals investment. C) consumption equals investment. D) consumption equals income.
Which of the following would be expected if the tariff on foreign-produced shoes were decreased?
a. The domestic price of shoes would fall.
b. The supply of foreign shoes to the domestic market would decline, causing shoe prices to rise.
c. The number of unemployed workers in the domestic shoe industry would decline.
d. The demand for foreign-produced shoes would decrease, causing the price of shoes to increase in other nations.