The concept of incidence is used to:
A. indicate which tax bears the bigger burden.
B. describe unexpected tax revenue generated.
C. describe who bears the burden of a tax.
D. describe how often people are taxed.
C. describe who bears the burden of a tax.
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Firms in monopolistic competition charge prices that are ________ those of the other firms in the market
A) close to B) very different from C) the same as D) completely unrelated to
Characteristics of a perfectly competitive market include:
A. the absence of transaction costs. B. differentiated products. C. few sellers, some with a large market share. D. All of these are characteristics of a perfectly competitive market.
Answer the question on the basis of the following information: Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is P L and that of capital is P C . The marginal product of labor is MP L and that
of capital is MP C . The firm sells its product competitively at a price of P X . Refer to the given information. In competitive labor markets, the marginal cost of an additional unit of labor: A. is equal to P L × MP L . B. is equal to MP L /P L . C. is equal to P L . D. cannot be determined from the information given.
Inflation targeting makes more sense than unemployment targeting, because ________
A) monetary policies affect inflation, not unemployment B) expected unemployment is not a key determinant of the unemployment rate C) a commitment to avoid high inflation is inherently more credible than a commitment to avoid high unemployment D) most voters and most elected officials are more concerned about inflation