The burden of a tax falls entirely on sellers if ________
A) the price elasticity of demand is unitary elastic
B) the price elasticity of supply is greater than 1
C) the income elasticity of demand is high
D) the price elasticity of supply is zero (perfectly inelastic)
D
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A flour mill holding exclusive contracts to 95% of the wheat in a large geographic area may operate as a flour producing monopoly locally because
A) the mill has a very inelastic supply curve. B) the mill is a natural monopoly. C) the mill controls a key input. D) the government will declare it a monopoly.
According to the above table, the marginal factor cost of the seventh worker is
A) $24.00. B) $126.00. C) $42.00. D) $168.00.
According to Walton and Rockoff, the primary reason the Federal government failed to build an adequate highway system before the Civil War was
a. the technology was not available. b. the canal craze diverted attention. c. rivalries among different sections of the country stalled legislation. d. the teachings of Adam Smith were taken too literally.
Economics is considered to be one of ______________ disciplines
a. natural science b. mathematical c. humanities d. social science e. fine arts