If the demand curve for a product is vertical, then
a. consumers will refuse to bear any share of tax burden.
b. producers will bear the larger share of the tax burden.
c. consumers will bear the entire tax burden.
d. producers and consumers will equally share the tax burden.
c
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Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 2 percent, an initial deposit of $500 will lead to a total increase in deposits of
A) $250. B) $5,000. C) $25,000. D) $50,000.
Which of the following transactions is a debit in the US current account?
A) Export of merchandise B) Export of services C) Gifts to foreigners D) Foreign bond purchases
Commodities that typically last three years or more are called:
A) durable goods. B) nondurable goods. C) services. D) none of the above.
The introduction of a tax in a perfectly competitive marketplace that is originally in equilibrium will lower total surplus.
Answer the following statement true (T) or false (F)