If the government imposes a specific tax on a monopoly, the consumer's tax incidence
A) can exceed 100%.
B) will always be between 0-100%.
C) may be negative.
D) will be the same as when the tax is imposed on a perfectly competitive firm.
A
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The activist response to the monetarist platform says that
A) private spending may show some stability, but monetary or fiscal policy designed to stabilize it will just make things worse. B) private spending is stable partly because consumption spending is based on permanent income. C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GDP. D) None of the above.
The antebellum transportation revolution
a. was driven by a few firms that gained monopoly control of the major transportation routes. b. increased the prices of many consumer goods. c. discouraged urban growth. d. caused political and economic tension between the East and the West. e. None of the above.
Which of the following statements is true of government spending?
a. An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase. b. Government spending is a part of monetary policy, not fiscal policy. c. A decline in government spending brings about an expansion in the economy. d. An increase in government spending increases the recessionary gap in the economy. e. An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in government spending.
The total producer surplus enjoyed by all sellers in a market
a. exceeds the market price b. is measured by the area below the market supply curve c. is called market producer surplus d. is the area below the market demand curve minus the area below the market supply curve e. is the area below the market supply curve minus the area below the market price