When a tax is placed on a product, the price paid by buyers
a. rises, and the price received by sellers rises.
b. rises, and the price received by sellers falls.
c. falls, and the price received by sellers rises.
d. falls, and the price received by sellers falls.
b
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Securitization is the process of
A) issuing stocks to finance capital spending. B) issuing bonds to finance purchases of equipment and structures. C) reducing risk by decreasing corporate debt loads. D) converting loans into securities.
Which of the following best explains why increasing marginal costs of production arise?
A. Different commodities use inputs in different proportions. B. All the factor inputs are not fully utilized in the production of different commodities. C. Different consumers have different tastes and preference sets. D. The factor endowments vary across countries.
Artificial intelligence (AI) technologies
A. produce large volumes of data that make decision making more complicated. B. can enable individuals to make more informed decisions. C. often reveal economic relationships that do not actually exist. D. free businesses, governments, and consumers from making decisions.
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary