Refer to Figure 18-1. Area B + C represents
A) the portion of sales tax revenue borne by consumers.
B) the portion of sales tax revenue borne by producers.
C) the excess burden of the sales tax.
D) sales tax revenue collected by the government.
A
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In the short-run, an increase in the price of raw materials will ________ the price level and ________ real GDP
A) raise; increase B) lower; increase C) lower; decrease D) raise; decrease E) raise; not change
The money demand function implies that money demand is
A) positively related to interest rates. B) negatively related to bond prices. C) negatively related to interest rates. D) negatively related to transactions in the economy.
All of the following are characteristics of an oligopoly EXCEPT
A) diseconomies of scale over all ranges of output. B) small number of firms. C) high barriers to entry. D) interdependence.
One major difference between the aggregate supply curve and an individual supply curve isthe aggregate supply curve represents:
A. production in the economy as a whole rather than just one good or service. B. production in an entire market rather than just one firm. C. goods and services sold rather than the total actually produced by each firm. D. goods and services produced and actually sold by each firm.