If a 20 unit tax is placed on a seller, then
A. both parties will share the tax burden equally.
B. the buyer will bear all of the tax burden.
C. the seller will bear all of the tax burden.
D. the distribution of the tax burden cannot be determined from the information given.
Answer: D
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Refer to the scenario above. Which of the following will you choose in order to maximize return?
A) Plan 1 B) Plan 2 C) Plan 3 D) Plan 4
In the dollar-pound market, the equilibrium price of the pound will change
a. only when there is a shift of the demand curve for pounds b. only when there is a shift of the supply curve for pounds c. only when there are shifts of both the supply for pounds and demand for pounds curves d. whenever there is a shift of either the supply or demand curves for pounds e. whenever there is movement along either the supply or the demand for pounds curves
Japan and China can both produce guns and rice. The country with the lowest opportunity cost of guns (in terms of rice) will
A. import guns. B. have a comparative advantage in guns. C. have an absolute advantage in guns. D. have a comparative advantage in rice.
The shoe leather costs of inflation include all of the following except:
A. the extra costs incurred to avoid holding cash. B. the installation of a new cash management system. C. the cost of more frequent trips to the bank. D. the lost purchasing power of cash.