If the demand for liquor is elastic and the supply of liquor is inelastic, when the government increases liquor tax, _____
a. most of the tax will be paid by the consumer
b. most of the tax will be paid by the producer
c. all of the tax will be paid by the consumer
d. all of the tax will be paid by the producer
e. the tax will be paid by the retailer
b
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An increase in taxes will increase total planned expenditures for goods and services
Indicate whether the statement is true or false
According to supply-side theory, which of the following would shift the aggregate supply curve leftward?
A. Lower marginal tax rates. B. An increase in the money supply. C. Government deregulation. D. An increase in unemployment and welfare benefits.
The only way that a society can produce outside the production possibilities curve is
A. by obeying the Law of Increasing Additional Cost. B. by producing efficiently. C. through economic growth. D. to use the concept of opportunity cost.
The four criteria for economic integration include trade flows, capital flows, people flows, and the similarity of prices in separate markets
Indicate whether the statement is true or false