One reason why soda companies are so fervently against this tax might be because they assume sellers will pay the entire tax. Sellers will pay the entire tax if
A) demand is perfectly inelastic.
B) the price elasticity of demand is between zero and 1.
C) demand is unit elastic.
D) demand is perfectly elastic.
D
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Which of the following will most likely occur during the recovery phase of a business cycle?
a. Real GDP rises, and unemployment falls. b. Real GDP declines, and inflation rises. c. Interest rates rise, and the number of business failures rise. d. Inflation rises, and employment falls.
Explain the relationship between opportunity costs and money costs. Can they be treated as identical?
According to Real Business Cycle theory,
a) lack of consumer confidence causes most business cycles b) price fluctuations are unimportant because they affect nominal, not real GDP c) recessions are an optimal response to negative technology shocks d) fiscal policy is the most appropriate way to smooth out economic fluctuations e) labor supply curves are extremely steep
What are the economic implications of rising health care costs?
What will be an ideal response?