When a tax is imposed on an item, it can generally be said that the incidence of the tax is
A. entirely on the buyer.
B. entirely on the seller.
C. on both the buyer and seller.
D. not determined in this manner.
Answer: C
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If unemployment is at the natural rate, then there
A) is no cyclical unemployment. B) is no frictional unemployment. C) will be cyclical and frictional unemployment but not structural unemployment. D) will be only cyclical unemployment.
The rate of interest that equates saving and investment at full employment is called the
A) real rate. B) nominal rate. C) natural rate. D) discount rate.
Two years ago Lenny put some money into an account. He earned 6 percent interest on this account and now he has about $1,000 . About how much did Lenny deposit into his account two years ago?
a. about $860 b. about $870 c. about $880 d. about $890
Which of the following is true of the relationship between income inequality and public policy in the U.S. since the 1980s?
A. Public policy has been more favorable to those at the high end of the income distribution resulting in an increase in income inequalities. B. Public policy has been less favorable to those at the high end of the income distribution resulting in a decrease in income inequalities. C. Public policy has been more favorable to those at the low end of the income distribution resulting in an increase in income inequalities. D. Public policy has been less favorable to those at the low end of the income distribution resulting in a decrease in income inequalities.