When there are very few substitutes for a good, the demand for the good will tend to be
A) inelastic.
B) elastic.
C) unitary.
D) perfectly elastic.
A
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Social Security taxes and Medicare taxes are both progressive taxes
Indicate whether the statement is true or false
If the Fed raises the interest rate, this will ________ inflation and ________ real GDP in the short run
A) reduce; lower B) reduce; raise C) increase; raise D) increase; lower
The ______________ Resource Model illustrated in the book shows the interdependence of resources, how they exchange
a. Foa & Foa b. Elbing c. Hertford & Myers d. Eccles & Ward
Refer to the supply and demand graph below. S1 and D1 represent the current market supply and demand, respectively. S2 and D2 represent the socially optimal supply and demand. One way that the government could shift demand to its socially optimal level
is to:
A. Tax the sellers
B. Tax the buyers
C. Subsidize the sellers
D. Subsidize the buyers