One result of a tax, regardless of whether the tax is placed on the buyers or the sellers, is that the
a. equilibrium quantity of the good is unchanged.
b. price the buyer effectively pays is lower.
c. supply curve for the good shifts upward by the amount of the tax.
d. tax reduces the welfare of both buyers and sellers.
d
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Expected value represents
A) the actual payment one expects to receive. B) the average of all payments one would receive if one undertook the risky event many times. C) the payment one receives if he or she makes the correct decision. D) the payment that is most likely to occur.
Firms generally prefer not to outsource product design and manufacturing because:
a. these activities are common and standardized. b. these operations are more or less static. c. these operations involve a low investment. d. these operations require investment in highly specific assets.
Evidence from a 1988 study of the market for professional basketball players
a. found no evidence of consumer-driven wage discrimination. b. found some evidence of consumer-driven wage discrimination. c. found that measurement of marginal productivity was very difficult for basketball players. d. indicated that sports with strong player associations are unlikely to experience wage discrimination.
What are the types of institution banks used to conduct foreign business?
A) corporations B) central banks C) commercial banks D) agency offices, subsidiary banks, and foreign branches E) state-owned enterprises