The incidence of a tax depends on whether the government collects the tax from buyers or sellers
Indicate whether the statement is true or false
FALSE
You might also like to view...
As a strategy to boost enrollment, in January 1996, a private college in Iowa offered free tuition for graduating high school seniors from the county where it is located. For students who accepted the offer, how did this offer affect the opportunity cost of attending college?
A. The opportunity cost did not change, since lost earnings were still a factor. B. The opportunity cost became zero for the typical student. C. The opportunity cost was very low, because the only cost was for books and supplies. D. The opportunity cost did not change, since tuition was not a factor in computing opportunity cost. E. The opportunity cost was lower than if tuition was charged, but there was still a cost.
In the short run, a firm can minimize its total costs of production by operating at the minimum of its average total cost curve
Indicate whether the statement is true or false
Which of the following pairs of policies have inconsistent effects on aggregate demand? a. A tax increase and an increase in the money supply
b. A transfer payment increase and an increase in the money supply. c. A reduction in government purchases and a reduction of the money supply. d. none of the above
Suppose that the United States can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude that
a. the United States has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the United States has an absolute advantage in the production of cars. d. All of the above are correct.