Refer to the above figure. An excise tax of $0.50 was imposed on this good. From the figure we can see that the
A) producer will bear most of the tax.
B) consumer will bear most of the tax.
C) consumer and producer will share the tax.
D) amount of the tax collected is less than $0.50.
B
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According to Porter's Five Competitive Forces Model, similar products produced by different firms within the industry affects a firm's ability to raise prices far more than substitutable products produced outside the industry
Indicate whether the statement is true or false
Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, one million dollars in required reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) two B) eight C) nine D) ten
Political business cycles result:
a. from the economic fluctuations that occur when discretionary policy is manipulated for political gain. b. from the recessionary gap that occurs when output falls short of the economy's potential c. from the expansionary gap that occurs when output exceeds the economy's potential. d. when the spending multiplier is manipulated for political gain. e. from the economic fluctuations that occur when automatic stabilizers are manipulated for political gain.
In most developed countries, the largest and fastest growing component of government expenditure has been
a) national defense b) transfer payments c) interest on the national debt d) transportation expenditures e) the cost of maintaining the legal system