When a tax is imposed on an item, it can generally be said that the incidence of the tax is
a. entirely on the buyer.
b. entirely on the seller.
c. on both the buyer and seller.
d. not determined in this manner.
c
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Most t-shirts bought by Americans are made in Asia. As a result of free trade, the production of t-shirts in America
A) has increased. B) has stayed the same. C) has decreased. D) has been taken over by the government. E) might change, but more information about what else the United States imports is needed to determine if U.S. production increased, decreased, or did not change.
When graphed, variables that are unrelated are shown by either a horizontal or a vertical line
Indicate whether the statement is true or false
The problem of a double coincidence of wants refers to
A) the insatiability of wants in a free market economy. B) poorly-managed companies producing what consumers want only by coincidence. C) the necessity in a barter system of each trading partner wanting what the other has to trade. D) the likelihood that needs will not be the same as wants.
With a contractionary monetary policy, as the output gap increases, the response of the central bank will tend to cause net capital outflows to ________ and cause the nominal exchange rate to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease