When a tax is imposed on a good, the actual incidence of the tax generally
a. falls entirely on the buyer.
b. falls entirely on the seller.
c. is shared between the buyer and seller.
d. is the same as the statutory incidence.
c. is shared between the buyer and seller.
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At the output where the combined amounts of consumer and producer surplus are largest
A. marginal benefit exceeds marginal cost by the greatest amount. B. consumer surplus exceeds producer surplus by the greatest amount. C. the areas of consumer and producer surplus necessarily are equal. D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
Suppose that a nation has a GDP of 1.0 trillion dollars in 2000. If a country grows at an average rate of 3.0 % per year over a fifteen year period, then its compounded GDP at the end of the 15 year period should be:
A. 1.47 Tr. B. 2.00 Tr. C. 1.33 Tr. D. 1.56 Tr.
When a negative externality exists in the case of a particular good, and if that is not reflected in the price, _____
a. too little of that good is produced and consumed b. too much of that good is produced and consumed c. all resources are taken away from the production of that good d. the government completely prohibits the consumption of that good e. all resources are allocated to the production of that good
If the Fed's monetary policy causes a substantial decrease in interest rates, what is the most likely impact on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to interest rates.