When the supply of land is perfectly inelastic, the economic burden of an annual tax on land
a. falls entirely on the people who owned land when the tax was imposed.
b. is passed on to future buyers of land in the form of higher prices.
c. is split between present and future landowners.
d. cannot be determined without information on the elasticity of the demand for land.
a. falls entirely on the people who owned land when the tax was imposed.
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Perfectly competitive firms are earning economic profits at a market price of $12 and an average total cost of $10. If new firms enter and do not affect the cost for all firms, the market price will ________ until it reaches ________.
A) increase; $16 B) decrease; $10 C) decrease; $11 D) increase; $13
If on Monday $1 = 146 Japanese yen and on Friday $1 = 147 yen, the dollar appreciated and the yen depreciated
a. True b. False
If potential output for an economy equals $8 billion, and actual output equals $7 billion, then this economy has a(n):
A. recessionary gap. B. budget deficit. C. expansionary gap. D. trade deficit.
Which of the following factors best explains why consumers might prefer to go to a restaurant that was similar to another restaurant in terms of décor and food choices but had fewer customers?
a. the presence of network externalities b. the idea that some people receive utility from goods they believe are popular c. income and substitution effects d. switching costs