If the elasticities of demand for alcohol, tobacco and gasoline are low and the elasticities of supply are high, then the burden of these taxes (excise taxes) falls more heavily on buyers than on sellers
Indicate whether the statement is true or false
TRUE
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Everything else held constant, an increase in government spending will cause
A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease.
Refer to the above figure. If the government imposes a price ceiling of $60
A) the quantity traded will be 150, and the price will be $40. B) the quantity traded will be 100, and the price will be $60. C) the quantity traded will be 200, and the price will be $60. D) the quantity traded will be 150, and the price will be $60.
Of the following, which is true of the relationship between the quantity of a good supplied and its price?
a. As price increases, the quantity supplied usually decreases. b. As price increases, the quantity supplied usually increases. c. As price increases, supply increases. d. When demand increases, so will supply. e. They always meet at the point of equilibrium in the market.
Which of the following economic perspectives for decision making is a statement that describes the world as it is?
a. Positive statement b. Normative statement c. Cognitive statement d. Reflective statement