If the demand for apples is highly elastic and the supply is highly inelastic, then if a tax is imposed on apples it will be paid:
a. largely by the sellers of apples
b. largely by the buyers of apples.
c. equally by the sellers and buyers of apples.
d. by the government.
a
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If the price index was 90 in year 1, 100 in year 2, and 95 in year 3, then the economy experienced
a. 10 percent inflation between years 1 and 2 ,and 5 percent inflation between years 2 and 3. b. 10 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3. c. 11.1 percent inflation between years 1 and 2, and 5 percent inflation between years 2 and 3. d. 11.1 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3.
Suppose that 25 units of X and 16 units of Y give a consumer the same satisfaction as 15 units of X and 18 units of Y. Then
A. the consumer can exchange five units of X for one unit of Y and keep utility unchanged. B. the consumer can exchange one unit of X for 1/5 unit of Y and keep utility unchanged. C. the market rate of exchange of X for Y is 1/5. D. both a and b E. all of the above
The problem for a central bank setting a zero inflation policy would be:
A. firms would have to cut the nominal wage to reduce the real wage. B. economic growth would also have to be zero. C. it is impossible to have zero inflation. D. the risk of high employment.
Capital stock is defined as the retail value that was paid for a firm's productive assets.
Answer the following statement true (T) or false (F)