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
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
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.