The burden of the payroll tax falls entirely on the employee regardless of how it is formally divided between employer and employee if the
a. demand for labor is inelastic.
b. supply of labor curve is horizontal.
c. supply of labor curve is virtually vertical.
d. demand for labor curve is elastic.
c
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Suppose that business firms spend $500 million on new capital equipment this year. Of this $500 million, $300 million was spent on domestically produced capital and $200 million was spent on foreign-produced capital
All else equal, these transactions contribute ________ to GDP. A) $0 B) $200 million C) $300 million D) $500 million E) $800 million
If a firm’s marginal profit is negative, it should reduce its output level.
Answer the following statement true (T) or false (F)
If a foreign supplier sells a good in another country at a cheaper price than it sells the good in its home market, the
a. foreign supplier will gain a monopoly in the foreign market. b. consumers in the receiving country will be harmed by the dumping of the good into its domestic market. c. consumers in the receiving country can gain from buying the foreign-produced good if it is cheaper than the cost of producing the good domestically. d. usual implications of the law of comparative advantage with trade restrictions do not hold in this case, particularly if the low-cost supplier is subsidized by a foreign government.
If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, only the United States would benefit from trade if the actual terms of trade between corn and wheat were 2:1.
Answer the following statement true (T) or false (F)