Which of the following is a difference between taxing buyers and taxing sellers?
a. Taxing buyers results in a decrease in equilibrium quantity, whereas taxing sellers results in an increase in equilibrium quantity.
b. Taxing buyers results in an increase in equilibrium quantity, whereas taxing sellers results in a decrease in equilibrium quantity.
c. Taxing buyers results in a decrease in equilibrium price, whereas taxing sellers results in an increase in equilibrium price.
d. Taxing buyers results in an increase in equilibrium price, whereas taxing sellers results in a decrease in equilibrium price.
c
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Q = K1/2L1/2 w = $2, r = $2 The firm would like to know the minimum cost of producing 2000 units of output. Find the combination of inputs that minimizes the cost of producing 2000 units, the total cost, and identify the expansion path
What will be an ideal response?
When one observes consumption and investment patterns over time, one finds that:
a. like consumption, investment is fairly stable over time. b. like consumption, investment is fairly erratic over time. c. unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations. d. unlike consumption, which is subject to erratic fluctuations, investment is fairly stable over time. e. investment is rarely affected by technological and economic factors.
If the cross price elasticity between Goods A and B equals 0.7, then a reduction in the price of Good B will:
a. increase the demand for Good A and increase Good A's price as a result. b. increase the demand for Good A and decrease Good A's price as a result. c. decrease the demand for Good A and increase Good A's price as a result. d. decrease the demand for Good A and decrease Good A's price as a result.
The point at which the burden of a tax ultimately rests is known as the
a. effect of the tax. b. impact of the tax. c. incidence of the tax. d. direction of the tax.